Youtube at the beginning had a lot more pirated content uploaded than Google Video. And Youtube did not discourage that type of viral content. It had more illegal copyrighted clips from movies, tv shows, popular songs, etc.
Based on interviews I saw, Google Video had a different philosophy. Susan Wojcicki was running it at the time and she originally thought Google Video would succeed because Google was "playing nice" by negotiating legal licenses with broadcasters like NBC. So in theory... Google Video would have the high-end desirable content (e.g. tv shows) that would be "better quality" than the amateur home videos on Youtube.
The theory turned out to be wrong because the pirated content that got Youtube into lawsuits was also what made them more viral and beat Google Video.
It's a counterintuitive example of a startup having less money than a big billion dollar public company like Google causes it to have a competitive advantage. Google eventually realized that Youtube was beating Google Video and just acquired them.
1. YouTube just worked, it relied on Flash and that was installed on almost every computer. IIRC google video required some other plugin and it didn’t work great.
2. There was a lot more content to watch, probably because they were less good at filtering copyrighted content.
I mention Dailymotion because it wasn't as good as YouTube in terms of user experience and content, but it also won against Google Video, which was simply bad and unused in France, to be honest.
Google loses interest in all sorts of projects, sometimes even when they're dominating their target market. More than anything, I'm amazed that Google Video lasted until 2012, considering it duplicated most of the functionality of their expensive and hugely successful acquisition.
* Google Videos had to do things the right way. It had to support tons of users on day 1. It had to ensure very high code quality.
* YouTube engineers were good, but they had lower bar to ship production code - probably they had less rigorous code review process or no code review at all; they just needed good enough infra And good enough code quality. Releasing v0.1 was cool, but the hard work was on the continuous / incremental improvement later. Speed is critical.
Contents
* the bar for videos on google videos was higher than YouTube’s, this fewer contents , which can’t cater to a broad audience
* YouTube had tons of home made videos. Even only a small portion of videos was interesting, it was still a big number. + long tailed contents for diverse group of internet users.
Luck
* consumer product is always hard. You need to have the right ingredients + right timing. Essentially , Luck plays an extremely important role in the success of any consumer facing products.
* knowledge work, especially creative work, is unlike manual labor. You don’t compete on the number of human labors. A tiny team might be able to beat a big corp in a very specific area.
* google leaders might treat google videos like a side project or a small bet. Resources are always limited. Best engineers & best marketing are always allocated to search & ads. Small bets need to fight for internal resources & corporate politics first. If small bets fail, employees get allocated to other projects, not big deal. With this kind of model, the small startup YouTube didn’t compete with google Corp. instead, they competed with a few not-the-best-employees in google who always had options to work on other projects. Had google allocated more resources to google videos, probably they might be able to do better.