Sunday, April 15, 2007

Why Agloco is better than Youtube?

What I talk here is about the company profit. Both of the company is rely on advertising for their income, so we could make comparisons of them, and we will know why Agloco is better than YouTube. Let's see about Youtube first, we will see about one year ago, which the condition of the member of YouTube is close to the amount of the Agloco member right now, so the comparison will be easier to judge.

At April 2006, YouTube member is about 12.9 millions of unique user. The bandwidth company usually charge about one penny ($0.01) for every minute of traffic. And YouTube is using a large scale of bandwidth, so probably got a major discount and will paying about 0.1 penny until 0.5 penny per minutes of bandwidth traffic. With the 40 millions of videos and 20 terabytes traffic a day, YouTube is approximately paying almost $1 million each month for the traffic and the payment go through Limelight networks. With 12.9 millions of user, it's a market for advertising. Akamai on that year posted about $11.9 millions for first quarter of the year, and that about $4 millions per month.

Now we see Agloco, the agloco ever stated that it want to reach about 10 millions of user this end of July 2007 (about same with the youtube's members last year), so the advertising will be about the same. Or maybe we just calculated it's about 5/6 of 4 millions = $3.33 milions per month. If we make it only 50% (because Agloco still new), then it's about $1.665 millions per month, and it will be grown to gain market trust, because Agloco advertising is displayed on every sites (because it's pasted on the viewbar, so where ever user going, the browser will display advertising for companies). The bandwidth cost? Gladly you asking this. Could you imagining the bandwidth of transmitting video and image/text based advertising? It's a big difference, one minute of video transmitting maybe taking up about 2 megabytes of traffic, and that amount of traffic already could transmit about 50 - 100 image advertising. So the bandwidth cost for Agloco is merely only about 2% of YouTube. 2% x $1 million = $20k per-month. So the income profit for Agloco is much higher than Youtube.

So we now knowing about Agloco and YouTube comparison, what are that means? That means Agloco is more profit than YouTube and it will lead to higher price on Agloco stock. Higher price on Agloco's stock means the owner of Agloco are richer. Owning Agloco means Owning of the internet is possible. And you know that to own of Agloco cost nothing? Care about it? Join Now.

No comments: