YouTube is a video-sharing website on which users can upload, share, and view videos, created by three former PayPal employees in February 2005
The company is based in San Bruno, California, and uses Adobe Flash Video technology to display a wide variety of user-generated video content, including movie clips, TV clips, and music videos, as well as amateur content such as video blogging and short original videos. Most of the content on YouTube has been uploaded by individuals, although media corporations including CBS, BBC, Vevo and other organizations offer some of their material via the site, as part of the YouTube partnership program.
Unregistered users may watch videos, and registered users may upload an unlimited number of videos. Videos that are considered to contain potentially offensive content are available only to registered users 18 and older. In November 2006, YouTube, LLC was bought by Google Inc. for $1.65 billion, and now operates as a subsidiary of Google.
Company history
YouTube was founded by Chad Hurley, Steve Chen, and Jawed Karim, who were all early employees of PayPal. Hurley had studied design at Indiana University of Pennsylvania, while Chen and Karim studied computer science together at the University of Illinois at Urbana-Champaign.
According to a story that has often been repeated in the media, Hurley and Chen developed the idea for YouTube during the early months of 2005, after they had experienced difficulty sharing videos that had been shot at a dinner party at Chen's apartment in San Francisco. Karim did not attend the party and denied that it had occurred, while Hurley commented that the idea that YouTube was founded after a dinner party "was probably very strengthened by marketing ideas around creating a story that was very digestible."
YouTube began as a venture-funded technology startup, primarily from a US$11.5 million investment by Sequoia Capital between November 2005 and April 2006. YouTube's early headquarters were situated above a pizzeria and Japanese restaurant in San Mateo, California. The domain name www.youtube.com was activated on February 14, 2005, and the website was developed over the subsequent months.
The first YouTube video was entitled me at the zoo, and shows founder Karim at the San Diego Zoo. The video was uploaded on April 23, 2005, and can still be viewed on the site.
YouTube offered the public a beta test of the site in May 2005, six months before the official launch in November 2005. The site grew rapidly, and in July 2006 the company announced that more than 65,000 new videos were being uploaded every day, and that the site was receiving 100 million video views per day. According to data published by market research company com Score, YouTube is the dominant provider of online video in the United States, with a market share of around 43 percent and more than 14 billion videos viewed in May 2010. YouTube says that 35 hours of new videos are uploaded to the site every minute, and that around three quarters of the material comes from outside the US. It is estimated that in 2007 YouTube consumed as much bandwidth as the entire Internet in 2000. Alexa ranks YouTube as the third most visited website on the Internet, behind Google and Face book.
The choice of the name www.youtube.com led to problems for a similarly named website, www.utube.com. The owner of the site, Universal Tube & Rollform Equipment, filed a lawsuit against YouTube in November 2006 after being overloaded on a regular basis by people looking for YouTube. Universal Tube has since changed the name of its website to www.utubeonline.com. In October 2006, Google Inc. announced that it had acquired YouTube for $1.65 billion in Google stock, and the deal was finalized on November 13, 2006. Google does not provide detailed figures for YouTube's running costs, and YouTube's revenues in 2007 were noted as "not material" in a regulatory filing. In June 2008, a Forbes magazine article projected the 2008 revenue at $200 million, noting progress in advertising sales.
In November 2008, YouTube reached an agreement with MGM, Lions Gate Entertainment, and CBS, allowing the companies to post full-length films and television episodes on the site, accompanied by advertisements in a section for US viewers called "Shows". The move was intended to create competition with websites such as Hulu, which features material from NBC, Fox, and Disney. In November 2009, YouTube launched a version of "Shows" available to UK viewers, offering around 4,000 full-length shows from more than 60 partners. In January 2010, YouTube introduced an online film rentals service, which is currently available only to users in the US.
Criticism
Copyrighted material
YouTube has been criticized for failing to ensure that uploaded videos comply with copyright law. At the time of uploading a video, YouTube users are shown a screen with the message "Do not upload any TV shows, music videos, music concerts or advertisements without permission, unless they consist entirely of content that you created yourself". Despite this advice, there are still many unauthorized clips of copyrighted material on YouTube. YouTube does not view videos before they are posted online, and it is left to copyright holders to issue a takedownnotice pursuant to the terms of the Digital Millennium Copyright Act.
Organizations including Viacom, Media set, and the English Premier League have filed lawsuits against YouTube, claiming that it has done too little to prevent the uploading of copyrighted material. Viacom, demanding $1 billion in damages, said that it had found more than 150,000 unauthorized clips of its material on YouTube that had been viewed "an astounding 1.5 billion times". YouTube responded by stating that it "goes far beyond its legal obligations in assisting content owners to protect their works". Since Viacom filed its lawsuit, YouTube has introduced a system called Video ID, which checks uploaded videos against a database of copyrighted content with the aim of reducing violations. In June 2010, Viacom's lawsuit against Google was rejected in a summary judgment, with U.S. federal Judge Louis L. Stanton stating that Google was protected by provisions of the Digital Millennium Copyright Act. Viacom announced its intention to appeal the ruling.
In August 2008, a U.S. court ruled in Lenz v. Universal Music Corp. that copyright holders cannot order the removal of an online file without first determining whether the posting reflected fair use of the material. The case involved Stephanie Lenz from Gallitzin, Pennsylvania, who had made a home video of her 13-month-old son dancing to Prince's song "Let's Go Crazy", and posted the 29-second video on YouTube.
Privacy
In July 2008, Viacom won a court ruling requiring YouTube to hand over data detailing the viewing habits of every user who has watched videos on the site. The move led to concerns that the viewing habits of individual users could be identified through a combination of their IP addresses and log in names. The decision was criticized by the Electronic Frontier Foundation, which called the court ruling "a set-back to privacy rights". U.S. District Court Judge Louis L. Stanton dismissed the privacy concerns as "speculative", and ordered YouTube to hand over documents totaling around 12 terabytes of data. Judge Stanton rejected Viacom's request that YouTube hand over the source code of its search engine, saying that it was a trade secret.
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