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YouTube Confidential

  • 18 pages
  • Highly Confidential
  • January 25, 2006


• YouTube is a consumer media company for watching and sharing video through a
Web experience
• YouTube is the largest Internet video entertainment service, having grown
exponentially since starting a public preview in May and launching the service in
• YouTube is solving the hard problems for video on the Internet to make watching
and sharing fast, fun and easy
Metrics (as of 7-25-06)
• Serving 100 million video views a day (up from 3 million at launch)
• Receiving 65,000 video uploads a day (up from 8,000 at launch)


What is YouTube?

YouTube is a consumer media company for people to watch and share original videos
worldwide through a Web experience.
What are some of the features?
The features are focused on watching, uploading and sharing videos. Some are:
• Video emhedding, which lets people insert a YouTuhe videos into a MySpace
account, a blog or other Web sites where anyone can watch them
• Public or private videos-when you upload you decide whether to broadcast it
publicly or share it with friends and family
• Subscriptions, which let YouTube users keep track of when their favorite users
upload new videos. It’s like building a fan club.

What is your market size?

The online advertising market continues to grow and has increased by about 30% to an
estimated $12.5 billion in 2005**. With the explosion ofInternet video in 2006, the
increase in home broadband access and with consumers spending more time on the Web,
companies are shifting their advertising budgets from traditional TV advertising to the
online video market. This presents a significant market opportunity for YouTube.

How do you respond to the recent ComScore report?

There has been a lot of recent controversy around Web Analytics and inconsistent
reporting of traffic and reach of different Web properties. Most recently the controversy
surrounded reports of a significant traffic decline at Yahoo!’s site by
cornS core mediametrix. The CornS core report was refuted by Hitwise, who released a
report indicating significant traffic gains for

Similarly, as you note, the most recent comScore report shows YouTube at 16MM users
while Nielsen NetRatings reports YouTube with over 30MM monthly users.
I think the point here is that each of these web tracking firms use different methods and
cannot be used as an accurate proxy for growth. At Y ouTube, we rely on our internal
data which, while we do not disclose those numbers, shows significant and steady
growth. We often quote Nielsen and Hitwise data because they seem to more accurately
reflect what we arc witnessing internally.

What role is Sequoia playing in the company beyond thefunding?

Roelof Botha, the former CFO of PayPal and now a Sequoia partner, is a board member
of Y ouTube and provides guidance and business support.

What role did Jawed Karim have in the creation of You Tube ?

Jawed was a co-founder of You Tube in February 2005 and helped form the genesis of the
service. Chad, Steve and Jawed were all early employees of PayPal and each brought our
unique expertise to creating the public preview of the company.

What is his involvement today?

Karim went back to pursue and advanced degree at Stanford and left the company in the
Fall of 2005. He stayed on in an advisory role for a short period afterwards
What does the acquisition by Google mean for the community?

This business was built, in large part, by our community. The user experience will not
change, we are committed to this. If it does, the goal is to have the change be for the
better, but we’re always listening to our community. The community is still in control on
Y ouTube – at the end of the day they decide what’s entertaining.

YouTube is going to keep doing what it’s doing. Our independence empowers us to
continue to build the best, most entertaining video experience on the Internet. By
partnering with Google, their resources and technology leadership will provide us with
the flexibility to expand that experience further.

I’ve been watching clipsfrom CNN and South Park on YouTube. Are these violating

Let me explain our copyright policy. We don’t control the content on our site. Our users
post the content on Y ouTube — including videos, comments, and ratings. Our terms of
use and clear messaging on the site make it clear that users must own or have permission
from copyright holders to post any videos.

We take copyright issues very seriously. We prohibit users from uploading infringing
material and we cooperate with copyright holders to identify and promptly remove
infringing content.

Have copyright holders contacted you? How often does that occur?

We haven’t seen it become a major problem. When we are contacted by copyright
holders we cooperate with them to remove their content from the site. For every 1
DMCA notification letter, we receive 5 calls requesting partnerships.

The Internet is moving in this direction and it’s up to the content owners to choose to
harness the benefit of new media distribution channels or cling to traditional, shrinking
business models.

Can you tell me what technology you use to identify inappropriate content?

We do not disclose this information for security and trade secret reasons.

Have you received a subpoena from company XX?

It is not our policy not to comment on legal matters. We operate pursuant to our Privacy
Policy, which you can find on our site at and we of
course comply with U.S. state and federal law.

You talk about a system and tools you had developed for working with copyright
holders to identify the videos that are infringing their copyrights. Can you describe a
little more how that works?

Utilizing a combination of user education, enhanced copyright owner tools, and better
back-end tools, we have been aggressively combating the issue of copyrighted content
ending up on Y ouTube.

We have recently deployed tools for copyright owners that have massively simplified the
process in which they go through to identify materials that they hold the copyrights for.
Furthermore, this process is now automated and online. We have also implemented a
back-end technique that applies a unique fingerprint on each piece of offending content
that was removed. Future video uploads which possess a media fingerprint that matches
that of a video that has been previously rejected will not be allowed into the system.
In our most recent release, we have implemented a length ceiling on all incoming videos,
rejecting all videos over 10 minutes in length. This is further iterating YouTube as being
a platform for short, user-generated clips and promotional content, not for full-length

Is there any way, say, when you take a work down at the request of the copyright
holder to keep another version (though not of exact same file) being uploaded the next

Yes, thcrc arc tcchniqucs that will enable us to identify “similar” videos from the ones
that have been previously rejected. By examining the sound fingerprints, it’s possible to
match segments of content even if they’re slightly different. However, one thing we have
also been cautious with is that there have been repeated instances in the past where
marketing teams within companies like Nike and Fox that have seeded content on
YouTube taking advantage of our viral platform. In other words, many times,
copyrighted content have been uploaded by the rightful owners of that content.

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