A viable business model for YouTube has yet to emerge and the site is seemingly racking up more controversy with each passing day, writes the Washington Post (via The Seattle Times).
One idea Google surely had in mind when it paid $1.65 million for the site several months ago was to cut deals with big media companies to have their content on the site. That idea has fallen through, though, with Viacom generating headlines over its demand that all its video clips be pulled from the site.
Overall, analysts say Google has not been effective in negotiating with media companies, possibly because Google may not showing the proper respect. Those same companies have been critical of YouTube's failure to roll out measures they feel would safeguard their content.
A sustainable and comprehensive advertising solution has also yet to be found, though that's long been the method most speculated about. YouTube also faces pressure not only from within but also from an ever-increasing number of competitor video sites that are reaching content deals with media companies.