YouTube CEO Chad Hurley - the man of the moment on the Web - was at the AlwaysOn Stanford Summit conference where he talked about how the video-sharing company is making revenue, creating a new advertising platform and building a sales team. For YouTube fans, this will mean the appearance of banners, sponsorships and contests. The trick for YouTube will be retaining the user experience while trying to introduce a bigger commercial element. My column in today's Financial Post (subscription required) looks at the video frenzy and how investors are piling on the bandwagon. It is an environment reminiscent of the e-commerce rage during the dot-com boom where dozens of start-ups of auction sites were launched to compete against eBay. At the AlwaysOn conference today, Kleiner Perkins partner Vinod Khosla made an excellent point relevant to the video industry when he talked about how home-run VC investments happen in markets that can be out of favour (i.e. investing in Infinera in 2001 after the telecom boom ended) and new markets where you're not trying to "create something better than other companies" (see the video-sharing industry).
Update: The San Jose Mercury has a story on YouTube and how it plans to stick with short video clips rather than streaming movies (a good strategy if you want to avoid the sticky issue of copyright violation, although I suspect if NBC wants to pay YouTube to stream a few episodes of a new show, Hurley will glad take it.)