YouTube is a reference to the website www.youtube.com. This website, started early 2005, is an online place to watch videos or post videos for free. Any user can post video clips to the website and allow other users to watch these clips at anytime, from anywhere.
Within a year of its launch the website was purchased by Google (GOOG). There were many issues involved in the acquisition due to the copyright lawsuits and the huge offer made. Since the sale YouTube has made deals and partnered with many major network media providers.
YouTube is one of the prime social networking video site which uses the power of Web 2.0 to enhance its functionality and user base.
It provides following services for the user:
Source of Revenue for YouTube is purely from advertisement. It users Google's personalized CRM engine to track the user videos and gets money from the advertisers. The advertisements are currently related to videos but with the advancement of technology, it will eventually turned out to be user centric.