Should YouTube Charge for Uploads?
Quoted in <http://blogs.zdnet.com/BTL/?p=18919>:
Network effects were known long before the Internet. They came to
prominence in the 19th century with telephony – if only one person has a
phone, telephony has zero value; if two people have phones they can call
each other and the service has some value; if almost everyone has a
phone the service becomes one of the most successful industries of
modern times. The interesting thing about the pioneers of telephony is
that they seem to have been much better at devising business models than
their modern Internet counterparts. Charging for calls by the minute was
smart, but charging by time of day and distance was pure genius—
establishing a business model that has lasted over a century. Imagine
what would have happened if Bell Telephone had allowed people to call
anyone anywhere at any time, for as long as they liked for free—not for
a fixed monthly rate, which may have made some sense, but for absolutely
nothing. Had the industry survived, which is highly unlikely, it would
look rather like Skype today.
Does YouTube have a network effect it can monetize?
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