YouTube remains as one of the most popular websites on the internet since its initial emergence onto the web less than a decade ago. The company and website was founded in February of 2005 by Steve Chen, Jawed Karim, and Chad Hurley. All three were employs at PayPal when they created and founded YouTube. When Chen and Hurley are asked about how the idea of the website came about, they say that it stemmed from having trouble sharing videos that they took at a party in San Francisco.
The actual domain was registered and activated in February of 2005, and the first video was uploaded to the website in April of the same year. Traffic began to rise at a very high rate, in the beginning due to people sharing and posting their videos on their MySpace pages. The quick and rapid growth of YouTube attracted the attention of Time Warner and Sequoia Capitol, who eventually ended up investing in it. In their very first year of operation, they received over 8 million dollars in funding from Sequoia Capitol.
By December of 2005, YouTube was being visited over 50 million times per day. Within the next few months the amount of daily views would reach 250 million. By the Spring of 2006, YouTube had reached 20 million views per day, and by that summer had reached a staggering 70 million, making it the tenth most visited site in the United States. It was at this time that the New York Post released their believed worth of YouTube, placing it between 600 and 1000 million dollars. MySpace and Google saw potential in the idea and tried releasing their own versions of the YouTube model, but with limited success.
In the later months of 2006, the Wall Street Journal published a report that said YouTube would be purchased by Google for 1600 million dollars. Although it was initially denied by both parties, Google did end up buying 1650 million dollars of YouTube stock during the same month. At the time of purchasing the controlling stock, there was over 100 million videos uploaded to YouTube with 65,000 being uploaded daily.
Within two years, by the summer of 2008, 38% of all videos viewed on the internet originated from YouTube. Although Google never revealed the official figures, it was estimated that YouTube brought in over 200 million dollars that year. The relationships between YouTube and TV/Film production companies have been mixed for the most part. There are many companies that have open lawsuits with the site to this day, with many going back years.
In more recent years, Google has had some trouble with effectively creating revenue from advertisements on YouTube, and finding a balance between user happiness and ad-revenue has been challenging. Although the site does not bring in more revenue than it costs to operate, it is the largest video streaming site in the world and one of the most consistently travelled to and viewed sites in the world.
The First Ever YouTube Video: