Quote:
Originally Posted by mynameisjim
I have to see that as being the norm more and more as time goes by. Even Google came out and said they don't know how to make money from Youtube. In fact, they make so little from it they don't even include it on the balance sheets.
I'm assuming the tube sites will die out as earnings start to fall and either go away or the big ones with brand recognition will morph into the new standard for MGPs, just in a "tube style" layout.
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For tube sites the biggest cost is bandwidth and as long as the cost of BW keep going down they will keep going. COGENT is selling $4/megs (you have to get a 10G port) and this cost will go down, not up as time goes. The encoding technology is getting better so now days you can push very high quality video for less bandwidth.
They dont pay for content and they dont spend on marketing....so margins must be good.