AV SQUID: Enjoy YouTube Simply Like Using iTunes
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what is the benefit of this as a user? I don't have that clear. Initially.
Your description doesn't "youtube the fun easy way..." and all the other text on your site doesn't tell me anything about it or why I would use it.
It took me a bit looking around (which most users won't give you) to figure out that you're using youtube as a music player. Oh!!! Why didn't you say so? Don't say "like using iTunes", tell me, "Use YouTube to find and play music!" (like itunes if you like), but you have to explain that to the user. Remember, iTunes isn't just music anymore, it's apps, movies, tv, etc.
Not meaning to be harsh, but your interface is horrible. Sure, I can play without typing, but it isn't just not nice. Go copy a design from somewhere else and use that. Copy iTunes if you like it (I think it's horrible), Zune is a much better UI, and most people won't recognize it because they don't use it, or do something like spotify.
At least you've launched something (which is better than many people), but you've just got started, still lots of work to do.
I'll have to disagree with you on design. Core functionality isn't functional if people don't use it. Design is not decoration. Think UX not UI. It is hugely important to the success of your start-up. I know. I created a site that people raved about the design and was growing nicely. I redesigned it to add some 'functionality' I thought people would appreciate, and people hated the new design and that growth came to a halt.
Good luck with the UX, my suggestion is still to stick to something people are familiar with, don't go re-inventing the wheel.