IP Democracy: Microsoft Tries to Ride the YouTube Rocket

The big news for today is Microsoft’s announcement of a “beta” version of Soapbox, a clear YouTube wannabe. Soapbox will be available on MSN Video and integrated with the Redmond giant’s portfolio of online services, including Windows Live Spaces and Windows Messenger.

As is the case with YouTube, users will be able to upload videos, search for videos and rate videos. Microsoft seems to have added enhancements that improve the video sharing concept, such as allowing viewers to continue watching selected videos while searching for new videos. With YouTube, users have to exit video viewing in order to hunt for new videos.

Although it’s understandable why Microsoft feels compelled to compete in the video sharing business, and the cost and technical barriers to entry are low, Soapbox feels imitative and therefore not all that interesting. Marketwatch’s Bambi Francisco nails it on the head when she writes

Not only is MSN a bit late to the party, it’s a bit of an old-timer entering a game at which the young are ruling the roost.

When it comes to video sharing or social networking or any of the youth-oriented Web 2.0 services, big companies are not in a position to jump into the market and challenge an innovator. Why? Because the “cool” quotient is critical to success and first-movers tend to create and dominate the playing field.

Microsoft may capture some portion of middle-aged or corporate users with Soapbox, but the rocket is still YouTube’s to ride — that is until a hipper alternative comes along. As Bambi writes

No matter how fancy and integrated the MSN video service is, I’m not sure if the MSN has the right brand or image to appeal to the new generation. It’s just that simple.

Posted by Cynthia Brumfield on September 19, 2006 8:00 AM to IP Democracy