August 30th, 2007
What if YouTube was simply lucky?
The post I wrote yesterday YouTube, Lazy Sunday, and Elephant Math is still bothering me.
This is why: the insane growth of YouTube had a definite starting point…the release of Lazy Sunday. I knew that Lazy Sunday was a factor in their growth, but I didn’t realize how big a deal it was until I graphed it out on Alexa. (not that Alexa is the end-word, by any means, but even if it is somewhat accurate the graph it would still show Lazy Sunday as the starting point).

What if it was Simply Luck?
What if the viral growth of YouTube was luck? What if, for example, someone had uploaded Lazy Sunday to some other video service? Would that service have taken off and become #1 instead of YouTube? Was YouTube just the product of serendipity?
If the answer is yes, then that suggests there is another social component to viral growth of web services. A social component that goes beyond just the inherent capability of the system: beyond the features. It may have something to do with ease-of-use…the person who uploaded Lazy Sunday chose YouTube because it was easy. Or maybe they chose YouTube because they could share the video on their blog. It could have been the design of the site at its most basic.
Or, it could have been some other factor. Maybe the person had a cousin who worked for YouTube. Maybe they liked the color scheme. Who knows? We’ll probably never know…so where does that leave us?
I think it leaves us with the notion that social sites like YouTube are ecosystems…places where growth is possible but not guaranteed, and success usually depends on care and feeding over time vs. creating a fully-formed success. The best we can do is provide an environment where growth and sharing can occur with the best weather possible.
3 Primary Video Activities that YouTube Got Right
Here are three ways in which YouTube created an environment for growth:
- Uploading: Everything to Flash video.
Plays everywhere. No platform issues here. YouTube sucks up whatever format your video is in and transcodes it to Flash. - Watching: Videos play by themselves.
The easiest activity is the one most done. Ever notice that YouTube videos play without you doing anything? Talk about making the primary purpose of the site easy…it just happens. I love this. - Sharing: Super sharing features.
YouTube has always had great sharing features. They include the code to share on your blog right alongside the video. Again, you don’t have to do anything for the code to be there. You just copy it, and it just works.
I don’t want to play armchair quarterback and say “YouTube’s design was what led to their dramatic growth”. Obviously, the release of Lazy Sunday had a lot to do with it, so it wasn’t just their design or their marketing or their investors. None of those single factors made YouTube the success that it is.
But I do want to know why someone might choose YouTube over its competitors early on in the game, before network effects started to take hold. And, given the way that YouTube has really made the three primary video activities easy, I am willing to say that YouTube created a fertile ecosystem in which growth could happen…by tearing down the boundaries to uploading, watching, and sharing videos. And that’s probably the most we can ask of any social site these days. Create an ecosystem in which things can grow, and with a little (or a lot) luck it might just grow like YouTube.
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Comments
1. Lar 12:13pm, Thu 30th, 2007
“Who knows? We’ll probably never know”
Why not just ask them?
Now for some cup cakes and the chronic ….les of Narnia
2. Steve Brewer 12:14pm, Thu 30th, 2007
I think embedding was the killer feature – for the first time people could (easily and at no cost) add video to their own site and the video played inline. If you have a blog, the experience of the video playing inline is just so radically better than linking off to another site.
What I would love to see – YouTube’s traffic broken down by on-site traffic and embedded traffic. How much of that initial growth was from people coming to youtube.com, and how much came from other popular destinations including youtube videos?
3. Rahul 12:18pm, Thu 30th, 2007
Have you considered that Lazy Sunday was merely coincidence and that several other factors, for instance major improvements in site performance or ease of use worldwide that happened at the same time Lazy Sunday was circulated? YouTube is a large organisation with many cogs moving at the same time. It’s hard to accept that we as public observers can speculate accurately what the origin for that growth really was.
4. CM 2:35pm, Thu 30th, 2007
The economics literature is full of examples of sites and businesses that are ‘lucky’ – and gives a fairly compelling explanation. Many of you probably already know about network effects, but maybe a rehash is in order. A network good is a good where the utility/benefit to a user depends not just on the good itself but also on the number of other users. Youtube (and similar sites) are classic examples of this, with their reliance on users for content. Other examples are telephone networks (how much would you pay for a phone on a certain standard if noone else had one?), operating systems and many, many other things. Typically, networked goods that fill a similar niche fight each other until a clear winner emerges – if the cost of being wrong is high (I just spent $500 on a betamax video…) then many consumers hold off purchasing altogether. If the cost of being wrong is low (I just signed up for a website noone uses), membership might slowly increase, but use will depend on active members. The result is often that the winner is either (i) lucky or (ii) has the best understanding of how to harness network effects (eg by giving product away cheaply/free early, locking in large numbers of corporate users, etc). Technical differences are often secondary. Bottom line: whatever Youtube’s technical advantages (or not), the reason for their dominance is the network effect.
5. Josh 3:34pm, Thu 30th, 2007
Ok, guys, so it was network effects. The question is then…how do you start them? That’s what I’m trying to get at…can you design for it?
6. Adam Green 6:22am, Fri 31st, 2007
All history is contingent. All huge successes in software are historical anomalies: right features, right place, right time, right people. That is the fallacy of exemplars. They are based on lightening strikes, not “rules” for success. They ignore the 99.9% of other products/companies who followed the rules and failed. There are no rules in history.
7. kid mercury 5:06pm, Sat 1st, 2007
videos that autoplay when the page loads, using flash, and allowing videos to be embedded were the keys to youtube’s success. seems obvious in hindsight, as awesome innovations so often do.
8. Shai Gluskin 1:11pm, Sun 2nd, 2007
It is likely that great design may have been necessary but not sufficient for YouTube’s success.
If one’s goal is to be a part of creating the next killer web ap, joining an excellent venture capital group that spends significant resources in finding and supporting Mark Zuckerberg type people is probably the best way. VC groups assume a large failure rate as inevitable in finding the next killer ap. They understand that luck and timing are often key ingredients and so you have to sew a lot of seeds in order grow a bean stock that will reach the clouds.
I would imagine that good venture capital groups employ design folks all the time to help support projects, understanding that excellent design is at least necessary, if not sufficient, for big success.
I’d love Josh to write a post about the role of design in creating niche market success. Most web aps/sites are not even trying to be killer aps because their target audience is a niche. My hunch is that the relative importance of design excellence versus luck/timing increases when the target audience is niche rather than universal.
For people in their 30’s and older who need to work and who would like to make a living via some kind of web service or application, it makes about as much rational sense trying to create a killer ap as it does putting money down on the lottery. The risk/return ratio is simply too high.
Understanding what made killer aps succeed is helpful even if, or maybe especially if, we discover that some key ingredients are out of our control.
9. Erkko 4:14pm, Mon 3rd, 2007
Great stuff Joshua, Great stuff! Everytime I get to reading your feed, I know i am up for a treat.
10. john 3:27pm, Tue 4th, 2007
I think its meteoric rise was due to a basic social network which combined one of the first easy to use video sharing platforms and was cool for first adopters to use. Plus they used the pirated content as you pointed out. I remember getting IMs that when they were videos all came with a YouTube url and it just got engrained in my brain that YouTube had funny and viral videos. I didn’t use the site as a destination site ie going there in my free time, but I got a ton of clips sent to me from others who found clips on their servers. YouTube got a bit lucky that the big gorillas in the space didn’t hop in faster and didn’t have the coolness factor that YouTube did. Plus it didn’t hurt to ride the popularity of pirated content. There are stats that show SNLs ratings went up after the LS clips zipped around the internet. Good topic and one that we write a lot about over on our blog. Thanks
11. Dare Obasanjo 12:16pm, Sat 8th, 2007
YouTube wasn’t lucky. Your post explains all the things they got right and after that it was just a matter of time. Lazy Sunday was not the first popular Internet video nor is it the most popular. Lots of sites have hosted popular videos in the past but none became as popular as YouTube on the strength of word of mouth based on the user experience of viewing/sharing a single video.
12. Josh 10:50pm, Sun 9th, 2007
Hi Dare…I’ve since found some more evidence that they were lucky…at least at the beginning.
13. j.verhine 10:35pm, Wed 12th, 2007
it was their name. if it wasn’t that video, it would be the next that would’ve helped them gain traction. so, if you view getting your windshield hit by a rock on the interstate lucky, then riding behind a dump truck increases your chance of luck.
14. johny 7:28am, Fri 14th, 2007
YouTube wasn’t lucky. Your post explains all the things they got right and after that it was just a matter of time. Lazy Sunday was not the first popular Internet video nor is it the most popular. Lots of sites have hosted popular videos in the past but none became as popular as YouTube on the strength of word of mouth based on the user experience of viewing/sharing a single video.
I think its meteoric rise was due to a basic social network which combined one of the first easy to use video sharing platforms and was cool for first adopters to use. Plus they used the pirated content as you pointed out. I remember getting IMs that when they were videos all came with a YouTube url and it just got engrained in my brain that YouTube had funny and viral videos. I didn’t use the site as a destination site ie going there in my free time, but I got a ton of clips sent to me from others who found clips on their servers. YouTube got a bit lucky that the big gorillas in the space didn’t hop in faster and didn’t have the coolness factor that YouTube did. Plus it didn’t hurt to ride the popularity of pirated content. There are stats that show SNLs ratings went up after the LS clips zipped around the internet. Good topic and one that we write a lot about over on our blog. Thanks
For people in their 30’s and older who need to work and who would like to make a living via some kind of web service or application, it makes about as much rational sense trying to create a killer ap as it does putting money down on the lottery. The risk/return ratio is simply too high.
Understanding what made killer aps succeed is helpful even if, or maybe especially if, we discover that some key ingredients are out of our control.
15. mike 1:29pm, Mon 14th, 2008
I think Shai is right. The design was necessary but not sufficient. The graph shows them taking off in early 2006, but they only released their beta version a few months before that. Their wheels were greased with good design and it was just a matter time before some great viral video came along and propelled them. Also, I remember when I first heard about YouTube (in my then GF’s apartment in Harlem) in early February 2006. I had also recently played around with Google Video. And Google Video had restrictions on the format and size of the vids you wanted to upload. Right then I thought, “well I’m not using Google anymore. I’ll use this YouTube thing.”