Comparing YouTube vs. Skype

Is everyone YouTube obsessed? If so, how come? Is it copyright issues? Jealously over its success? The possibility it might crack a huge Web 2.0 hurdle by actually doing an IPO? The blogosphere and media has been frothing at the keyboard lately – ranging from passionate defenses by Lefsetz's Letter and  Fred Wilson to  Mark Cuban's copyright rant  and the New York Times' interview with YouTube CEO Chad Hurley. This YouTube addiction is strikingly similar to what Skype experienced before it was snapped up by eBay for $4.2-billion. To illustrate my point here's how they compare:

                                          YouTube                                                        Skype

Young Founders            Chad Hurley, Steve Chen                   Niklas Zennstrom, Janus Friis

Industry Under Attack        TV, movies                                          Telecom/telephony

Initial Cost                           Free                                                              Free

Initial Business Model          None                                                             None

Current model              AdSense, contextual advertising                  Premium services

Biggest Fans                 Sequoia Capital, Fred Wilson                           Tim Draper

Biggest Enemies                Mark Cuban                                             ILECs, cablecos

Takeover Buzz                   Medium                                                          Hot

Value                            $2-billion (speculated)                              $4.2-billion (eBay's cost)

VC Raised:                    $10.8-million                                                   $21.1-million

VCs                               Sequoia Capital                             Draper Fisher, Index Ventures

Legal Issues                  No lawsuits…yet.                               Lawsuits: Streamcast, IDT 

Competition:              Microsoft, Google, MySpace, Apple       Vonage, ILECs cablecos

Traffic:                           100 million video streams/day            7M concurrent users (peak)

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