Why Apple Should Buy YouTube

Today Robert Young provided a reasonable argument for why Steve Jobs and company should buy the high flying site YouTube.com. For those of you from another planet, YouTube.com plays host to thousand upon thousands of homemade videos (and a growing number of pirated clips from commercial content providers who have learned that if you can't beat 'em, join 'em). My college buddies and I turn to YouTube's featured videos whenever we're up for a good laugh.

According to comScore Media Metrix, YouTube had 16 million unique U.S. visitors in July, a 20 percent increase from 13 million in June. The site didn't even have measurable traffic until August 2005, when it had 58,000 unique visitors. As most of Apple's avid followers know, iTunes simply hasn't made the same strides as YouTube in the digital video arena.

Mr. Young points out, "YouTube would give Apple a platform to tap into the highly-coveted stream of online ad revenues, particularly within the fast-growth, high-CPM video ad segment." Not only that, but it would tap into the same group that is buying its iPod. It could even add popular YouTube videos to its new iTunes movie store.

Young and others accept that Apple is not a front runner in the race to purchase YouTube. In fact, in an earlier piece, he suggested that, "with a rumored asking price of $1 billion, NBC Universal was the most likely contender to buy YouTube." However, I wouldn't count out Mr. Jobs just yet.