Originally Posted by Chief

I disagree. I think Google is going about this pretty smartly. They don't have much real quality content they can put postrolls in front of that people would accept, I agree. However stuff like:

https://youtube.com/user/journeymanpictures

or

https://youtube.com/user/AlJazeeraEnglish

Two of my own subscriptions I'd definitely put up with a preroll to watch. And with the lawsuit on the table, I think this is stuff you won't really see the other major players wanting to pirate and sells ads next to if people don't want to put up with the pre-roll on youtube. If it is some 1 or 2 minute clip than no, but if it is a quality piece running 5-10+ minutes long that interests me it wouldn't phase me a bit. And I'd imagine once they start doing it companies with quality stuff might actually be tempted to put it on there with the hopes of getting a decent return.

Lawsuits aside, which could have a big impact on youtube (though I doubt they will lose outright if at all), I think Google will eventually turn it into a profitable enterprise - though perhaps they may not be able to monetize the percentage of videos initially predicted - it will have give them a firm foot in the video advertising door no doubt. If you have a look at the 'show partner only videos' option it seems to me Google is taking on 'partners' like crazy, and just about anyone with non-pirated stuff and a few views is getting picked up. I'd imagine their revenue numbers should climb pretty impressively from here.