Google better be prepared to handle an explosion of videos submitted to YouTube now that people no longer have to encode or process their videos before submitting.
Contentwise, there will be pros and cons to this move by Google. On the bright side, this will allow more people with talent who were previously limited by their inability to properly encode videos for submission to YouTube to showcase what they can do. On the other hand, YouTube will probably be swamped with useless and pointless videos soon, just because people can use their webcams to record directly there. Not that there’s not enough of those on YouTube already, but now every Tom, Dick and Harry will want to post their “hey look at me, I’m scratching my nose!” video, and will, in my opinion, result in lots of junk and wasted time sorting through them.
In any case, I can only see viewership of YouTube growing due to this feature, which will of course increase Google’s revenue that comes from advertising dollars. The question is can they rake a profit from this? I presume they’ll also have to spend quite a lot more on servers and maintenance to anticipate the rising traffic.