A few years ago, nobody had heard of YouTube. Today, the video sharing Web site is the first port of call for people seeking video clips on the Internet. Visitors to YouTube watch videos ranging from the absurd to the poignant, from teens goofing-off around the house to American soldiers speaking on camera to family members. Some clips are professional grade; most are grainy homespun productions.

Although YouTube has many fans, perhaps the greatest among them is Google. In 2006, the paid-search leader laid down a whopping $1.65 billion to acquire the online video firm. For some analysts, Google's acquisition of YouTube was little more than a wasteful bid on jerky, low-resolution home video--at shareholders' expense. Yet for others, the paid search leader's massive spend on the video sharing service was nothing less than a bid to own the future of television.

At least for now, YouTube's content is limited to short, low-resolution clips. But when the day comes that every consumer has fat broadband pipes pumping data feeds into the home, the YouTube model will be a rich, gratifying way to consume video. Even so, fans love YouTube as is—without super broadband. And why not: the site serves up clips for almost any interest, and it's easy to use. For example, music lovers who thrill over British-Invasion rock can, using their mouse, click on rare performances by the Kinks or the Beatles, creating their own impromptu documentary.

The real intrigue of YouTube, so far as Google is concerned, lies in advertising. Google is confident that it will be able to sprinkle YouTube video content with personalized, measurable advertising tailored to particular viewers. The ability to offer individual consumers the precise products they want at precisely the right time is a sought-after prize for advertisers.

At the new YouTube—"Goo-Tube," as many are calling it—consumers will see only the content they want, when they want. Google will be watching right along with them, serving up product ads suited to match the video-surfing habits of every user.