Youtube entering the fray

With the advent of potentially losing blockbuster to the rules of modern business, keep up with the times (or else), Youtube has recognized a possible market on in its own video viewing platform.

This market is movies for rent. From the time that Youtube started as an independent product, to now where it is owned by the tech giant Google; it has sometimes struggled to monetize it's large audience. Well that may soon change.

In January Google made a widely unnoticed move to rent 5 independent films on the Youtube website, possibly to gauge the demand from it's marketplace. If this test proved worthy enough to roll out a full-blown movie renting platform, the site could see a dramatic increase in revenue through all of its loyal followers. There are two keys to its future success: 1) Will Google be able to strike an advantageous deal with film companies to use their content on its website. 2) Will Google be able to provide a value to customers that exceeds Hulu, Redbox, Amazon, and Netflix (to just name a few).

If Youtube can offer these two keys there could be a major additions to the "black" of Google's bottom line. Keep your eyes on the lookout for more companies to start the foray into more immediate gratification type of offers. Currently Apple is the king and there are a few other companies that could be nipping on its heels in the next 2-3 years.

The success of these companies affect the end consumer more than anything else. Everyone knows that the more fierce the competition, the more the leaders have to proverbially "step their game up." If they do not then Myspace, AOL, and Blockbuster's will be happening all over the place. And when these companies do step up, the consumer gets their best effort at a valuable product. When consumers are happy, the financial statements look more appealing. When the financial statements are more appealing, investors absorb the benefits.

Since I am an investor, I welcome the advent of fierce competition in capitalist markets. In the end everyone is happy. Especially the everyday man investing in an early retirement.