Google is in discussions to acquire YouTube for about US$1.6 billion, although the deal is far from done and the talks could collapse, The Wall Street Journal reported on Friday, citing an unnamed source familiar with the matter.Google’s reported interest in YouTube would reflect a sense of urgency on the part of the search engine giant to improve its position in the red-hot online video market.Google entered the market in early 2005, at about the same time YouTube was founded. But so far the success has gone to the scrappy startup, not Google.In September, YouTube nabbed almost 46 percent of all U.S. visits to video websites, while the video section of News Corp.’s MySpace.com came in second with 21.2 percent, according to Hitwise. Google Video came in third with 11 percent, followed by Microsoft’s MSN Video with 6.8 percent and Yahoo’s Yahoo Video with 5.6 percent. YouTube, in typical startup fashion, approached the market aggressively, opening up its service to anyone wanting to upload their videos, and quickly became a phenomenon. It embraced tagging and sharing features, creating the most popular online video community.Meanwhile, Google took a much more conservative approach, at first featuring only videos obtained through formal agreements with professional production houses. Consequently, users had to pay to view many of the videos in the catalog. Months later, it added an upload feature for regular users, but closely policed submissions. It wasn’t until recently that it opened wide the service’s door and added tagging and sharing capabilities. Yahoo, Microsoft and AOL are also playing catch-up to YouTube, whose model these large Internet companies are adopting.Google, Yahoo, Microsoft and AOL need a strong position in this market, due to the increasing popularity of online video. Collectively, traffic to the top 10 video websites increased 164 percent between February and May of this year, according to Hitwise. As traffic to online video sites increases, so does the interest of advertisers, who in turn generate most of the revenue for Google, Yahoo, Microsoft and AOL.For many years, online video remained an unfulfilled promise, hobbled by high broadband prices, inferior image quality, and reluctance by TV networks and film companies to put their shows and movies on the Web. However, in the past 18 months, video on the Web has gained momentum, helped by a critical mass of users with broadband access, improved quality, and a willingness by production companies to distribute their films and programs online.Neither Google nor YouTube immediately responded to requests for comment.-Juan Carlos Perez, IDG News Service (Miami Bureau)Related Links: Google Wants Microsoft, Yahoo Data to Defend Book-Scan Initiative Google Literacy Initiative Unveiled Google Opens New NYC Office YouTube, Warner Music to Share Ad RevenueCheck out our CIO News Alerts and Tech Informer pages for more updated news coverage. Related content brandpost Sponsored by SAP Generative AI’s ‘show me the money’ moment We’re past the hype and slick gen AI sales pitches. Business leaders want results. By Julia White Nov 30, 2023 5 mins Artificial Intelligence brandpost Sponsored by Zscaler How customers capture real economic value with zero trust Unleashing economic value: Zscaler's Zero Trust Exchange transforms security architecture while cutting costs. By Zscaler Nov 30, 2023 4 mins Security brandpost Sponsored by SAP A cloud-based solution to rescue millions from energy poverty Aware of the correlation between energy and financial poverty, Savannah Energy is helping to generate clean, competitively priced electricity across Africa by integrating its old systems into one cloud-based platform. By Keith E. Greenberg, SAP Contributor Nov 30, 2023 5 mins Digital Transformation feature 8 change management questions every IT leader must answer Designed to speed adoption and achieve business outcomes, change management hasn’t historically been a strength of IT orgs. It’s time to flip that script by asking hard questions to hone change strategies. By Stephanie Overby Nov 30, 2023 10 mins Change Management IT Leadership Podcasts Videos Resources Events SUBSCRIBE TO OUR NEWSLETTER From our editors straight to your inbox Get started by entering your email address below. Please enter a valid email address Subscribe