welcome to mojo this is show eight my name is ashton carter solution and I’m
name is ashton carter solution and I’m
name is ashton carter solution and I’m CT more and this week we’re going to go
CT more and this week we’re going to go
CT more and this week we’re going to go a little bit more in depth to some
a little bit more in depth to some
a little bit more in depth to some things we touched on last week we’re
things we touched on last week we’re
things we touched on last week we’re going to talk about the fifth year
going to talk about the fifth year
going to talk about the fifth year anniversary of the Google YouTube deal
anniversary of the Google YouTube deal
anniversary of the Google YouTube deal that’s how we’re going to take a look at
that’s how we’re going to take a look at
that’s how we’re going to take a look at facebook credits and then in lightning
facebook credits and then in lightning
facebook credits and then in lightning round we got a few things lined up for
round we got a few things lined up for
round we got a few things lined up for yahoo hewlett-packard yeah lots talk
yahoo hewlett-packard yeah lots talk
yahoo hewlett-packard yeah lots talk about also about Microsoft as well as
about also about Microsoft as well as
about also about Microsoft as well as Google so let’s get right to it october
Google so let’s get right to it october
Google so let’s get right to it october nine 2011 is the five-year anniversary
nine 2011 is the five-year anniversary
nine 2011 is the five-year anniversary of the 1.65 billion dollar deal should
of the 1.65 billion dollar deal should
of the 1.65 billion dollar deal should Shane yeah in fact when it closed that
Shane yeah in fact when it closed that
Shane yeah in fact when it closed that after because it was a stock deal I was
after because it was a stock deal I was
after because it was a stock deal I was actually even more than that but that’s
actually even more than that but that’s
actually even more than that but that’s just a little footnote okay so five
just a little footnote okay so five
just a little footnote okay so five years into this deal I’m going to read
years into this deal I’m going to read
years into this deal I’m going to read you a quote from none other than Mark
you a quote from none other than Mark
you a quote from none other than Mark Cuban he said quote I said it was a huge
Cuban he said quote I said it was a huge
Cuban he said quote I said it was a huge mistake back then and I still think it’s
mistake back then and I still think it’s
mistake back then and I still think it’s a huge mistake all YouTube is is Google
a huge mistake all YouTube is is Google
a huge mistake all YouTube is is Google subsidizing the bandwidth of every
subsidizing the bandwidth of every
subsidizing the bandwidth of every individual in the world end quote now
individual in the world end quote now
individual in the world end quote now what makes that even more interesting is
what makes that even more interesting is
what makes that even more interesting is that Mark Cuban sold broadcast calm for
that Mark Cuban sold broadcast calm for
that Mark Cuban sold broadcast calm for 5.7 billion dollars to yahoo in the you
5.7 billion dollars to yahoo in the you
5.7 billion dollars to yahoo in the you know pre calm bubble days so is Mark
know pre calm bubble days so is Mark
know pre calm bubble days so is Mark Cuban right I disagree with him
Cuban right I disagree with him
Cuban right I disagree with him completely I think he’s looking at this
completely I think he’s looking at this
completely I think he’s looking at this from a kind of a non-tech perspective
from a kind of a non-tech perspective
from a kind of a non-tech perspective you know if you if you look at it
you know if you if you look at it
you know if you if you look at it Google’s the number one search engine in
Google’s the number one search engine in
Google’s the number one search engine in the world YouTube is number two that
the world YouTube is number two that
the world YouTube is number two that means when they got YouTube they they
means when they got YouTube they they
means when they got YouTube they they gave themselves a lead in search that is
gave themselves a lead in search that is
gave themselves a lead in search that is almost impossible to close more
almost impossible to close more
almost impossible to close more importantly they get additional search
importantly they get additional search
importantly they get additional search history on every user they can target
history on every user they can target
history on every user they can target ads a lot better and let’s even forget
ads a lot better and let’s even forget
ads a lot better and let’s even forget about video ads let’s talk about AdWords
about video ads let’s talk about AdWords
about video ads let’s talk about AdWords there’s AdWords all over YouTube videos
there’s AdWords all over YouTube videos
there’s AdWords all over YouTube videos now and just the way that that search
now and just the way that that search
now and just the way that that search history can be plugged in to target
history can be plugged in to target
history can be plugged in to target people on that level I think it was a
people on that level I think it was a
people on that level I think it was a huge huge deal yeah I actually disagree
huge huge deal yeah I actually disagree
huge huge deal yeah I actually disagree with Mark Cuban as well but let’s just
with Mark Cuban as well but let’s just
with Mark Cuban as well but let’s just hold off on mark for a second i just
hold off on mark for a second i just
hold off on mark for a second i just want touch on one thing you said the
want touch on one thing you said the
want touch on one thing you said the whole the inventory that youtube get
whole the inventory that youtube get
whole the inventory that youtube get sorry that Google gets through youtube I
sorry that Google gets through youtube I
sorry that Google gets through youtube I remember one day flipping a switch for
remember one day flipping a switch for
remember one day flipping a switch for something called Adsense for content
something called Adsense for content
something called Adsense for content host which I had no idea what it was and
host which I had no idea what it was and
host which I had no idea what it was and our revenue had watched a youtube com /
our revenue had watched a youtube com /
our revenue had watched a youtube com / watchmojo like triple so the revenue
watchmojo like triple so the revenue
watchmojo like triple so the revenue that YouTube and I think I’m allowed to
that YouTube and I think I’m allowed to
that YouTube and I think I’m allowed to say that I don’t think that’s any crazy
say that I don’t think that’s any crazy
say that I don’t think that’s any crazy NDA breaking stuff but basically so
NDA breaking stuff but basically so
NDA breaking stuff but basically so let’s say we’re making one dollar from
let’s say we’re making one dollar from
let’s say we’re making one dollar from our YouTube channel once we started to
our YouTube channel once we started to
our YouTube channel once we started to run google ads on our youtube channel we
run google ads on our youtube channel we
run google ads on our youtube channel we start
start
start three dollars there’s some big dollar
three dollars there’s some big dollar
three dollars there’s some big dollar those are some big dollars and in fact
those are some big dollars and in fact
those are some big dollars and in fact sometimes that’s how much we make but
sometimes that’s how much we make but
sometimes that’s how much we make but the point is that that just in of itself
the point is that that just in of itself
the point is that that just in of itself recouped a lot of the investment now you
recouped a lot of the investment now you
recouped a lot of the investment now you know you always joke about oh let me
know you always joke about oh let me
know you always joke about oh let me guess you wrote this article in that
guess you wrote this article in that
guess you wrote this article in that article I remember before here yeah
article I remember before here yeah
article I remember before here yeah here’s another one from the closet
here’s another one from the closet
here’s another one from the closet before YouTube soul to google we ran
before YouTube soul to google we ran
before YouTube soul to google we ran some numbers and out you know I was like
some numbers and out you know I was like
some numbers and out you know I was like listen YouTube is profitable I don’t
listen YouTube is profitable I don’t
listen YouTube is profitable I don’t know if you guys are aware of this
know if you guys are aware of this
know if you guys are aware of this YouTube is either profitable or it could
YouTube is either profitable or it could
YouTube is either profitable or it could be profitable if it turns on display ads
be profitable if it turns on display ads
be profitable if it turns on display ads and then years later after Steve Chen
and then years later after Steve Chen
and then years later after Steve Chen and chad hurley sold the company they
and chad hurley sold the company they
and chad hurley sold the company they actually came out and they opened up
actually came out and they opened up
actually came out and they opened up their financials and YouTube was making
their financials and YouTube was making
their financials and YouTube was making money like profits not just revenue so I
money like profits not just revenue so I
money like profits not just revenue so I think the deal was not bad now without a
think the deal was not bad now without a
think the deal was not bad now without a doubt no one else but Google I think
doubt no one else but Google I think
doubt no one else but Google I think could have subsidized that massive
could have subsidized that massive
could have subsidized that massive bandwidth but even like you saw that
bandwidth but even like you saw that
bandwidth but even like you saw that there’s you know analysts came out and
there’s you know analysts came out and
there’s you know analysts came out and said even the bandwidth is in that much
said even the bandwidth is in that much
said even the bandwidth is in that much because of puring we’re basically if one
because of puring we’re basically if one
because of puring we’re basically if one big-ass media company has excess
big-ass media company has excess
big-ass media company has excess bandwidth then Google can use that to
bandwidth then Google can use that to
bandwidth then Google can use that to reduce their bandwidth and hosting costs
reduce their bandwidth and hosting costs
reduce their bandwidth and hosting costs and you’re right i think just from a
and you’re right i think just from a
and you’re right i think just from a marketing perspective if you compare
marketing perspective if you compare
marketing perspective if you compare where google video was which frankly
where google video was which frankly
where google video was which frankly google video was ambitious but it wasn’t
google video was ambitious but it wasn’t
google video was ambitious but it wasn’t really going anywhere relative to
really going anywhere relative to
really going anywhere relative to youtube and you you know and google just
youtube and you you know and google just
youtube and you you know and google just decided to buy them and i think when you
decided to buy them and i think when you
decided to buy them and i think when you think about even two billion dollars
think about even two billion dollars
think about even two billion dollars that’s nothing today google is sitting
that’s nothing today google is sitting
that’s nothing today google is sitting on like 20 30 billion dollars and it was
on like 20 30 billion dollars and it was
on like 20 30 billion dollars and it was two billion dollars to close off that
two billion dollars to close off that
two billion dollars to close off that much more of the web you know they
much more of the web you know they
much more of the web you know they everyone talks about how Google and
everyone talks about how Google and
everyone talks about how Google and Facebook are always in this war to close
Facebook are always in this war to close
Facebook are always in this war to close the web well if you own the number one
the web well if you own the number one
the web well if you own the number one video destination you own a huge chunk
video destination you own a huge chunk
video destination you own a huge chunk of the web yeah I want to just now touch
of the web yeah I want to just now touch
of the web yeah I want to just now touch on Mark Cuban I think Mark Cuban is I
on Mark Cuban I think Mark Cuban is I
on Mark Cuban I think Mark Cuban is I love Mark Cuban great salesman great
love Mark Cuban great salesman great
love Mark Cuban great salesman great business guy you got to give him credit
business guy you got to give him credit
business guy you got to give him credit you could say he was lucky I mean luck
you could say he was lucky I mean luck
you could say he was lucky I mean luck and timing are as important as you know
and timing are as important as you know
and timing are as important as you know ambition vision execution but the thing
ambition vision execution but the thing
ambition vision execution but the thing that I find is a bit disingenuous in
that I find is a bit disingenuous in
that I find is a bit disingenuous in Mark Cuban saying that is he sells
Mark Cuban saying that is he sells
Mark Cuban saying that is he sells broadcast calm to yahoo he gets stock
broadcast calm to yahoo he gets stock
broadcast calm to yahoo he gets stock and then he basically enters into a
and then he basically enters into a
and then he basically enters into a caller which is basically a strategy
caller which is basically a strategy
caller which is basically a strategy where as yahoo shares go down he’s
where as yahoo shares go down he’s
where as yahoo shares go down he’s basically unloading those shares so he’s
basically unloading those shares so he’s
basically unloading those shares so he’s right and doing that from a financial
right and doing that from a financial
right and doing that from a financial perspective but i always think like
perspective but i always think like
perspective but i always think like whenever an acquisition goes sour right
whenever an acquisition goes sour right
whenever an acquisition goes sour right now if you type broadcast calm you go
now if you type broadcast calm you go
now if you type broadcast calm you go nowhere but the Yahoo home page right so
nowhere but the Yahoo home page right so
nowhere but the Yahoo home page right so it’s like one company was bought for 5.7
it’s like one company was bought for 5.7
it’s like one company was bought for 5.7 billion in stock ceases to exist pretty
billion in stock ceases to exist pretty
billion in stock ceases to exist pretty quickly
quickly
quickly you could blame yahoo which is what
you could blame yahoo which is what
you could blame yahoo which is what sellers always do but i think as a
sellers always do but i think as a
sellers always do but i think as a seller you have a responsibility to make
seller you have a responsibility to make
seller you have a responsibility to make sure that the company that somebody buys
sure that the company that somebody buys
sure that the company that somebody buys is successful now take a look at youtube
is successful now take a look at youtube
is successful now take a look at youtube youtube yes steve chen sort of tuned out
youtube yes steve chen sort of tuned out
youtube yes steve chen sort of tuned out pretty quickly i think you want to start
pretty quickly i think you want to start
pretty quickly i think you want to start playing golf and investing Chatterley
playing golf and investing Chatterley
playing golf and investing Chatterley stuck around and even though google
stuck around and even though google
stuck around and even though google brought in you know professional
brought in you know professional
brought in you know professional managers google really not just invested
managers google really not just invested
managers google really not just invested money I actually think Google really
money I actually think Google really
money I actually think Google really changed their philosophy instead of just
changed their philosophy instead of just
changed their philosophy instead of just thinking that all the algorithm and
thinking that all the algorithm and
thinking that all the algorithm and mathematics and technology will make
mathematics and technology will make
mathematics and technology will make this a money maker they really have
this a money maker they really have
this a money maker they really have evolved you know I’ve outlined so many
evolved you know I’ve outlined so many
evolved you know I’ve outlined so many things that you know YouTube should be
things that you know YouTube should be
things that you know YouTube should be doing better and to give credit to
doing better and to give credit to
doing better and to give credit to Google they’re almost doing all of those
Google they’re almost doing all of those
Google they’re almost doing all of those things and considering YouTube is so
things and considering YouTube is so
things and considering YouTube is so massive and there’s all these rights
massive and there’s all these rights
massive and there’s all these rights issues and piracy issues you really have
issues and piracy issues you really have
issues and piracy issues you really have to give them credit so i don’t i don’t
to give them credit so i don’t i don’t
to give them credit so i don’t i don’t really agree with mark cuban actually on
really agree with mark cuban actually on
really agree with mark cuban actually on any level i think at the end of the day
any level i think at the end of the day
any level i think at the end of the day it was two billion in stock which is
it was two billion in stock which is
it was two billion in stock which is like who cares it’s like a drop in the
like who cares it’s like a drop in the
like who cares it’s like a drop in the ocean right and even from a revenue
ocean right and even from a revenue
ocean right and even from a revenue model perspective you hear about hulu of
model perspective you hear about hulu of
model perspective you hear about hulu of serving up four times as many video ads
serving up four times as many video ads
serving up four times as many video ads as youtube i don’t think that matters
as youtube i don’t think that matters
as youtube i don’t think that matters youtube also has the whole adwords
youtube also has the whole adwords
youtube also has the whole adwords adsense plugged in and i would like to
adsense plugged in and i would like to
adsense plugged in and i would like to see how much money Hulu’s making off ads
see how much money Hulu’s making off ads
see how much money Hulu’s making off ads vs. what Google is making off AdWords in
vs. what Google is making off AdWords in
vs. what Google is making off AdWords in YouTube and one thing video ads are
YouTube and one thing video ads are
YouTube and one thing video ads are really intrusive users don’t want them
really intrusive users don’t want them
really intrusive users don’t want them those adword ads they’re a little bar at
those adword ads they’re a little bar at
those adword ads they’re a little bar at the bottom of the video you can close
the bottom of the video you can close
the bottom of the video you can close them if you want and more often than not
them if you want and more often than not
them if you want and more often than not you end up clicking on them by accident
you end up clicking on them by accident
you end up clicking on them by accident which is crappy for the advertiser but
which is crappy for the advertiser but
which is crappy for the advertiser but you just close the window and move on
you just close the window and move on
you just close the window and move on with your viewing final point on this
with your viewing final point on this
with your viewing final point on this and then we’ll move to segment two I
and then we’ll move to segment two I
and then we’ll move to segment two I think that’s another really great part
think that’s another really great part
think that’s another really great part of why Google investing in YouTube and
of why Google investing in YouTube and
of why Google investing in YouTube and you know taking it in the right
you know taking it in the right
you know taking it in the right direction and not sacrificing the user
direction and not sacrificing the user
direction and not sacrificing the user experience by running pre-rolls non-stop
experience by running pre-rolls non-stop
experience by running pre-rolls non-stop early on is really really good because
early on is really really good because
early on is really really good because that actually forced the big major media
that actually forced the big major media
that actually forced the big major media companies to invest in hula hula makes
companies to invest in hula hula makes
companies to invest in hula hula makes over 500 million in revenue hulu has
over 500 million in revenue hulu has
over 500 million in revenue hulu has become sort of you know the yin to
become sort of you know the yin to
become sort of you know the yin to YouTube’s yang and and I think you know
YouTube’s yang and and I think you know
YouTube’s yang and and I think you know it’s sort of one fed off the other one
it’s sort of one fed off the other one
it’s sort of one fed off the other one sort of became master of the super
sort of became master of the super
sort of became master of the super premium content at the top the other one
premium content at the top the other one
premium content at the top the other one became the master of the premium sort of
became the master of the premium sort of
became the master of the premium sort of torso content YouTube in the middle and
torso content YouTube in the middle and
torso content YouTube in the middle and yes there’s obviously all the
yes there’s obviously all the
yes there’s obviously all the user-generated content at the bottom and
user-generated content at the bottom and
user-generated content at the bottom and the prosumer content that’s become very
the prosumer content that’s become very
the prosumer content that’s become very popular but but in the end I think huge
popular but but in the end I think huge
popular but but in the end I think huge Gogol’s investment and
Gogol’s investment and
Gogol’s investment and vision in growing YouTube helped hulu
vision in growing YouTube helped hulu
vision in growing YouTube helped hulu become what hulu became because it
become what hulu became because it
become what hulu became because it became such a foe when you look at all
became such a foe when you look at all
became such a foe when you look at all of the YouTube clones they all shut down
of the YouTube clones they all shut down
of the YouTube clones they all shut down or went out of business vo on out of
or went out of business vo on out of
or went out of business vo on out of business reber we looked at buying
business reber we looked at buying
business reber we looked at buying rubber believe it or not when when r
rubber believe it or not when when r
rubber believe it or not when when r ever was deciding to sort of yourself
ever was deciding to sort of yourself
ever was deciding to sort of yourself yeah but but that didn’t happen because
yeah but but that didn’t happen because
yeah but but that didn’t happen because I said you know we’re in a leadership
I said you know we’re in a leadership
I said you know we’re in a leadership position and you know professionally
position and you know professionally
position and you know professionally produced content why do I want to get my
produced content why do I want to get my
produced content why do I want to get my ass kicked by YouTube as a clone etc so
ass kicked by YouTube as a clone etc so
ass kicked by YouTube as a clone etc so it didn’t make sense well that’s what
it didn’t make sense well that’s what
it didn’t make sense well that’s what google did by buying YouTube they they
google did by buying YouTube they they
google did by buying YouTube they they took online video and they forced it
took online video and they forced it
took online video and they forced it mainstream really early and like let’s
mainstream really early and like let’s
mainstream really early and like let’s face it companies like VEVO would not
face it companies like VEVO would not
face it companies like VEVO would not exist or succeed without YouTube yeah
exist or succeed without YouTube yeah
exist or succeed without YouTube yeah that would make a great segment for an
that would make a great segment for an
that would make a great segment for an upcoming show which is just looking at
upcoming show which is just looking at
upcoming show which is just looking at vivos a case study but today we’re going
vivos a case study but today we’re going
vivos a case study but today we’re going to shift gears and come back and talk
to shift gears and come back and talk
to shift gears and come back and talk about Facebook right after this
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