Bandwidth costs are expensive. Most sites like yourdailymedia.com run on a lower quality bandwidth compared to sites like metacafe, break etc. The massive media sites use content delivery networks, it’s a series of disconnected points of presence that cache content onto servers close to the end user.

So if someone is in Florida, they would receive the video from our Florida location or if they were in Amsterdam it would come from our Amsterdam location. The bandwidth costs are extremely high!

The truth is, except for search, Google is no leader in any of the other areas they’ve got into. In fact, if you look at “Blog search” – let’s be clear, Google is all about search after all – Technorati is still clearly the leader. Not only but when Google launched their Blog search, many people were quick to predict the end of Technorati. It’s been a while and so far, so good…

Heck, I look at Yahoo – a company that does almost EVERYTHING that can be done on the net – and that isn’t stopping other companies from delivering great services while competing with Yahoo.

To me, the problem of launching a service is not whether a giant might get into that, but how many other leveled players you’re going to be up against. For online video, it surely is a saturated market, but not because Google, Yahoo and MySpace do it, but because there are other 300 companies more your size doing it as well.

Who is up for building a video website?

jk. the market is saturated.. and with google in the mix, there will be no other introductory players..

15 mill for this? i think you can hire 10 developers and crank out a better site in 2 months for 1 mill.

VCs = sheep.

youtube is #20 according to alexa, and this is #180. In my opinion, they don’t have a chance, the industry is saturated.

You can’t just publish things and say that you are, ” committed to protecting the rights of copyright”, and that you will remove content if the copyright holder contacts you, when it’s obvious that the majority of the trafic comes from stolen material. When they start making money the media companies will come down on them, hard.

YouTube and GoogleVideo do have some material created by their users, but almost every video on metacafe’s first page is clips from tv-shows. The only diffrence between metacafe and abum, kontraband, blennus etc is that they have less banners, oh yeah, and $15 million from some clueless investors

Microsoft’s support for the Mac is uncertain. [source]

That said the video quality at 350kbps looks much better than the Flash video on YouTube in my view. [but I had to switch to windows to see it]

Another question … does anyone know how much these folks are paying for bandwidth? Any guesses? How about 25 cents per Gig transfered? This will add up quickly.

Metacafe, the popular Israeli video site, has taken a hefty $15 million in funding from Benchmark Capital and Accel Partners – on top of an original investment from Benchmark of $5 million. Metacafe, which launched in 2003, is the 80th biggest site…