Warner Music did. As this Newsweek story describes, personal relationships really do make a difference in this business. It’s just a bootstrapped startup trying to find its way — they deserve some slack! Youtubenewsweek The sleezy entertainment industry goons need to back off and let innovation bloom. And they will, because there aren’t any deep pockets there to sue yet. The question instead, though (as the article says), is the huge amount of capital it will take to keep YouTube going. The boys at Sequoia have already thrown in $11.5 million — but that’s just the beginning of what this thing will need. Try $2 million a month, some say, just to run the service. Wow, do they need ad revenues — fast! Meantime, how much more will the VCs bet? Well, don’t think they (and their friends) can’t pour it on — and will. Yet there are those already predicting YouTube’s demise….read Analyst Firm Predicts YouTube Is ‘Goin’ Down’ .

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