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Can YouTube resist organizational change? March 19, 2007

Posted by Lady in brand, Consumers, Internet, monopoly, Organizational Environment, sustainable development.
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I recently read an article entitled, “YouTube struggles despite dominance” which discussed how YouTube is struggling to compete for the business of media companies even after the fact that they were recently acquired by Google.  YouTube’s inability to prevent unauthorized uploads has caused them to lose potential deals with prominent media companies such as Viacom. In addition, some media companies such as Viacom were not pleased with the way YouTube attempted to seal a deal because they felt as though YouTube did not display “respect for their content.”

Analysts have different opinions of what this problem would do for the future of YouTube. Some analysts believe that YouTube needs to make a change in order to build long-lasting relationships with some of these media companies. They believe that they need to adopt new technology to prevent unauthorized uploads and also establish trust with these media companies by protecting the media companies’ copyright terms. Without making some necessary changes, these analysts believe that YouTube will eventually lose out to its’ competitors such as iFilm and Revver. Other analysts believe that YouTube can easily obtain deals with media companies just because of their brand name. These analysts do not believe that competition is a big threat to YouTube.

I chose this article because it shows the existence of some forces of organizational change within YouTube. They may need to do some things differently in order to continue to compete for business with these media companies. What are the forces of change? Well the obvious one is competitive forces since media companies can seek service from competitors such as iFilm and Revver. Might there be social forces working against YouTube because of the increased demand for established trust with these media companies and demand for software that would protect the media company’s content? I believe so.

Does YouTube need to give in to these forces of changes? Or does YouTube have enough bargaining power to resist these forces? Might their strategy of being the most dominant and popular free video sharing website allow them to resist making the changes that these media companies prefer? I believe that this may be the case in the short run. However, I believe that it will not be sustainable once YouTube’s competitors become more popular and trusted by these media companies.

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Comments»

1. Charley S - March 20, 2007

YouTube needs to be sure not to overestimate their [osition in the industry. Their brand name is nowhere near as strong or established as the major movie studios and tv networks. If youtube doesn’t change to help appease these powerful forces then they could be pushed out of the market very quickly. Internet sites are easily duplicated and competitive; if another site has better content then people will figure it out and switch to that site.

2. Stacey Swift - March 20, 2007

YouTube’s current market position reminds me of the music download industry before all the lawsuits and regulations. People used to be able to download from Napster without a problem, but then as artists started to complain the music download industry was regulated. If YouTube does not answer to their potential partners, they may face this same problem in the future.

3. proper skin - March 25, 2016

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