GooTube's a Goner
Ooops. It's not like anyone's been predicting this.
This is what it looks like when a "business" that doesn't really have a business plan is elevated to superstardom, and people forget about reality. GooTube was never doing anything that others couldn't do -- except for allowing its users to illegally upload thousands of copyright-infringing pieces of content.
Worse than that, it was a classic underpants gnome. It was collecting underpants, but there was no way to get to profit. The only hope was that the PITA of fighting GooTube's legions of faithful illegal uploaders would dissuade content producers from resisting. But resist they have.
Now that the big entertainment folks have resisted the GooTube blackmail, and realize they can control their content, and their brand, (as they can't when randoms upload their content, like this) GooTube will be stuck with nothing but low-value short clips of stuff that most advertisers won't want to pay to support. You know, garbage like this.
Good thing those two lucky kids sold when they did. They might consider dumping their GOOG shares as quickly as they can, too. After all, everyone else is. At least on the inside.
And when there's not much left on GooTube but litter-box vids and narcissistic teens talking nonsense to their webcams, and businesses taking advantage of Big Goo's free hosting setup (and laughing all the way to the bank) remember -- some of us told ya so.