Quote:
Originally Posted by BlueWire
Its been stated quite a bit. Here is an article that mentions it...
http://articles.moneycentral.msn.com...PrimeTime.aspx
I know that MySpace was such a bandwidth whore that it was losing money faster than they could print it. But as these companies get absorbed by media conglomerates their strategies become more refined. Their incoming marketing dollars go up while their cost per user goes down.
If there is one thing that YouTub really has going for it, it is the fact that video compression through flash will continue to improve which will then greatly decrease their bandwidth bills.
Personally, I think that GOOGLE bought YouTube not so much because they knew for a fact that it would be huge for their bottom line...but that fact is they have a ton of ads to serve and are always looking for new avenues to explore to keep their advertising clients happy. And with click fraud becoming a larger issue...one way to wipe out click fraud (or greatly minimize it) is to keep you network as much in-house as possible.
My  |
I agree with you. The reason for the purchase is the large traffic base - even if its not making money at the moment, anywhere where there is traffic and lots of it, the potential for huge money is there. And if anybody can extract it, its a company with deep enough pockets to refine and find ways to get it.