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Google Votes Vocally for Internet Video With Its Acqusition of YouTube for $1.65 billion


Google, the internet giant, has made a clear, resounding statement of what it thinks of the future of internet video: a major revenue channel. It literally said this by recently investing a whopping $1.65 billion in acquiring YouTube, an online media entertainment company providing online video sharing services. This acquisition came barely 20 months after YouTube was founded. The Executives of Google were convinced that the "YouTube team has built an exciting and powerful media platform that complements Google's mission to organize the world's information and make it universally accessible and useful".

Obviously, this transaction will itself attract further interest to online video and give a boost to the growth of that platform. Already, video on the web is proving to be a hit, obviously helped by the increasing availability of broadband internet access. (Continues below...)

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YouTube, on this count, has indeed gained in popularity at an amazing speed. With over 100 million video views delivered daily and over 65,000 new videos updated each day, there is no doubt that this business concept is proving a huge success.

The increasing power of internet video is a phenomenon that no serious marketer can easily wave aside. Statistics already show recreational internet surfing overtaking television watching in daily time allocation among the American populace. In all, these developments position the internet as a medium that will gain more space and become increasingly important, particularly as a marketing platform.

Third world countries that are yet to key seriously into the internet culture are consequently cutting themselves off a huge chunk of today's global commerce transacted via the internet.

Google has made a statement of its faith in the growing power of the internet by this recent investment. Interesting, investors seem to have given clear endorsement of these actions with the company's stock price just breaking the $500 mark.

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