Talked about broadband penetration as a key driver. Users now have the tools to create, manipulate and consume video and all sorts of multimedia content. Advances in storage and compute power are changing the dynamics around rich content. In a few years we will be able to store a lifetime of video on a hard drive.
Networks of advertising and content partners are strategic assets for Google. Google has paid over $6.2B to network partners. The company claims to treat advertising content the same as other content to improve hit rates and user experience.
YouTube provides the right toolset for consumer video and Google has the right advertising exertise and technology to turn it into money. Content owners have to think outside of their site and realize that they content has to be where the users are.