Does YouTube turn a profit?

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  • teh ghey
    • Jul 2026
    #1

    Does YouTube turn a profit?

    I was wonderhing this while I was on it today. Do you think they have more money comin gin than going out?

    Yeah I know its Google and a billion dollars is nothing to them, but Im wondering if YouTube is in the black or in the red
    Tags: None
    • After Shock Media
      It's coming look busy
      • Mar 2001
      • 35299
      #2
      no it does not.

      [email protected] ICQ:135982156 AIM: Aftershockmed1a MSN: [email protected]

        Comment

        • Barefootsies
          Choice is an Illusion
          • Feb 2005
          • 42635
          #3
          Originally posted by After Shock Media
          no it does not.
          Correct.

          It did not turn a profit even before Google bought it. Nor has it come close since.
          Should You Email Your Members?

          Link1 | Link2 | Link3

          Enough Said.

          "Would you rather live like a king for a year or like a prince forever?"

            Comment

            • Si
              Such Fun!
              • Feb 2008
              • 13900
              #4
              YouTube deserves to lose money because it has made society lose wisdom.

                Comment

                • fris
                  Too lazy to set a custom title
                  • Aug 2002
                  • 55695
                  #5
                  its like $175,000 to advertise on the main index for 24 hours
                  Since 1999: 69 Adult Industry awards for Best Hosting Company and professional excellence.

                    Comment

                    • mynameisjim
                      Confirmed User
                      • Aug 2007
                      • 2985
                      #6
                      They don't post revenue for youtube on the Google public discolures. But a research group put their total revenue at about $75 million in 2008.

                      Do the math.
                      jim (at) amateursconvert . com Amateurs Convert

                        Comment

                        • st0ned
                          Confirmed User
                          • Mar 2007
                          • 8437
                          #7
                          Originally posted by mynameisjim
                          They don't post revenue for youtube on the Google public discolures. But a research group put their total revenue at about $75 million in 2008.

                          Do the math.
                          That makes for a huge loss.

                          "According to data published by market research company comScore, YouTube is the dominant provider of online video in the United States, with a market share of around 43 percent and more than six billion videos viewed in January 2009.[14] It is estimated that 13 hours of new videos are uploaded to the site every minute, and that in 2007 YouTube consumed as much bandwidth as the entire Internet in 2000.[15][16] In March 2008, YouTube's bandwidth costs were estimated at approximately US$1 million a day.[17] Alexa ranks YouTube as the third most visited website on the Internet, behind Yahoo! and Google.[18]"

                          Source: Wikipedia
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                            • Sam Granger
                              Confirmed User
                              • Dec 2004
                              • 3958
                              #8
                              Well, what do you expect. It's not a regular site. Vids require shitloads of BW. Especially now with HD enabled on youtube! Nothing compared to most of our sites with images, text anf externally hosted flv's

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                                Comment

                                • RogerV
                                  Banned!
                                  • Jul 2002
                                  • 12591
                                  #9
                                  they made alot when they bought it off wallstreet when there stock jumped. doesnt matter if it made money or not people bought more stock etc. all hype like most of wallstreet

                                    Comment

                                    • Ozarkz
                                      So Fucking Banned
                                      • Jan 2009
                                      • 2377
                                      #10
                                      http://blogs.zdnet.com/BTL/?p=10054

                                        Comment

                                        • teh ghey
                                          #11
                                          Originally posted by mynameisjim
                                          They don't post revenue for youtube on the Google public discolures. But a research group put their total revenue at about $75 million in 2008.

                                          Do the math.
                                          So they will break even in about 14 years

                                            Comment

                                            • cali_22
                                              Confirmed User
                                              • Oct 2002
                                              • 2330
                                              #12
                                              Dont kid youself youtube makes lots of money u morons.

                                                Comment

                                                • Angry Jew Cat - Banned for Life
                                                  (felis madjewicus)
                                                  • Jul 2006
                                                  • 20368
                                                  #13
                                                  youtube could cost google millions a day, and it's still worth it for them in their domination plan.

                                                    Comment

                                                    • xentech
                                                      Confirmed User
                                                      • Jan 2006
                                                      • 1405
                                                      #14
                                                      Google can afford to lose money on YouTube just to remain the #1 on that niche. It may become profitable in the future, they are already making steps towards it. YouTube is now the second largest search engine in the world so I think in their eyes that loss is worth it.

                                                        Comment

                                                        • mynameisjim
                                                          Confirmed User
                                                          • Aug 2007
                                                          • 2985
                                                          #15
                                                          Well, Google can afford to lose money on it, but for how long.

                                                          Don't forget, they only have one profitable product and everything else pretty much loses money. You can't ride that forever. I'm not saying they are in any immediate danger, but at some point they need these things to become profitable, not just dominant.
                                                          jim (at) amateursconvert . com Amateurs Convert

                                                            Comment

                                                            • Blazed
                                                              Confirmed User
                                                              • Jun 2006
                                                              • 1701
                                                              #16
                                                              If video advertising ever kicks off like it was expected then things could change very quickly, is that not the reason they bought it in the first place because they saw video advertising as the future?
                                                              ☻

                                                                Comment

                                                                • JamesK
                                                                  hi
                                                                  • Jun 2002
                                                                  • 16731
                                                                  #17
                                                                  Originally posted by xentech
                                                                  Google can afford to lose money on YouTube just to remain the #1 on that niche. It may become profitable in the future, they are already making steps towards it. YouTube is now the second largest search engine in the world so I think in their eyes that loss is worth it.
                                                                  Yep, I agree.

                                                                  A lot of website types have had this problem in the past. Hell, in the beginning companies didn't even know how to make money off the internet. They will find a way eventually to make huge profit off it.
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                                                                    • Snake Doctor
                                                                      I'm Lenny2 Bitch
                                                                      • Mar 2001
                                                                      • 13449
                                                                      #18
                                                                      The big thing holding youtube back right now is the Viacom lawsuit.

                                                                      Until the legal issues there get sorted out, and they have a clear idea of what they can and can't do, what and how they can advertise etc, they're just going to spin their wheels.

                                                                      The case law for their business model doesn't exist yet, it's going to be decided by the judge(s) hearing this suit.
                                                                      sig too big

                                                                        Comment

                                                                        • Cutty
                                                                          So Fucking Banned
                                                                          • Jan 2006
                                                                          • 1265
                                                                          #19
                                                                          All of your answers are invalid unless one of you works for youtube.

                                                                            Comment

                                                                            • $5 submissions
                                                                              I help you SUCCEED
                                                                              • Nov 2003
                                                                              • 32195
                                                                              #20
                                                                              Probably still in the money losing stage of any business' evolution.

                                                                                Comment

                                                                                • $5 submissions
                                                                                  I help you SUCCEED
                                                                                  • Nov 2003
                                                                                  • 32195
                                                                                  #21
                                                                                  Originally posted by mynameisjim
                                                                                  Well, Google can afford to lose money on it, but for how long.

                                                                                  Don't forget, they only have one profitable product and everything else pretty much loses money. You can't ride that forever. I'm not saying they are in any immediate danger, but at some point they need these things to become profitable, not just dominant.
                                                                                  Good point. It's an open question when the advertising downturn will hit Google. It hit Yahoo pretty bad during the last bust of 2001 to 2003

                                                                                    Comment

                                                                                    • SpeakEasy
                                                                                      Confirmed User
                                                                                      • Sep 2002
                                                                                      • 2681
                                                                                      #22
                                                                                      Originally posted by Snake Doctor
                                                                                      The big thing holding youtube back right now is the Viacom lawsuit.

                                                                                      Until the legal issues there get sorted out, and they have a clear idea of what they can and can't do, what and how they can advertise etc, they're just going to spin their wheels.

                                                                                      The case law for their business model doesn't exist yet, it's going to be decided by the judge(s) hearing this suit.

                                                                                      I will agree with this statement...
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                                                                                        • Kron
                                                                                          Confirmed User
                                                                                          • Jan 2005
                                                                                          • 1668
                                                                                          #23
                                                                                          Originally posted by fris
                                                                                          its like $175,000 to advertise on the main index for 24 hours
                                                                                          damn, this is insane
                                                                                          I dont exchange money!

                                                                                            Comment

                                                                                            • leek
                                                                                              Confirmed User
                                                                                              • May 2008
                                                                                              • 342
                                                                                              #24
                                                                                              Google does not release YouTube's numbers publicly so everything everyone says here is just speculation.

                                                                                              Here is the latest guesstimates:
                                                                                              http://www.forbes.com/2009/02/24/hul...idcontent.html

                                                                                                Comment

                                                                                                • HorseShit
                                                                                                  Too lazy to set a custom title
                                                                                                  • Dec 2004
                                                                                                  • 17513
                                                                                                  #25
                                                                                                  imagine if they started charging $5 a member per month, people that like it would definitely pay $5 a month or $50 for a years access, they'd be making nice money then

                                                                                                    Comment

                                                                                                    • Zorgman
                                                                                                      Confirmed User
                                                                                                      • Aug 2002
                                                                                                      • 6103
                                                                                                      #26
                                                                                                      It's a tax right off.
                                                                                                      ---

                                                                                                        Comment

                                                                                                        • Twistys Tim
                                                                                                          Confirmed User
                                                                                                          • Apr 2008
                                                                                                          • 1923
                                                                                                          #27
                                                                                                          I think the important thing for Google was making sure that nobody else owned it.


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                                                                                                            • Twistys Tim
                                                                                                              Confirmed User
                                                                                                              • Apr 2008
                                                                                                              • 1923
                                                                                                              #28
                                                                                                              Originally posted by jdavis
                                                                                                              imagine if they started charging $5 a member per month, people that like it would definitely pay $5 a month or $50 for a years access, they'd be making nice money then
                                                                                                              I think that would kill it. A better, or more viable option, would be to upsell surfers to a subscription service with higher quality videos, and exclusive content provided by content partners (TV networks, movie studios, etc.)

                                                                                                              Most of their surfers are 35>


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                                                                                                                • CarlosTheGaucho
                                                                                                                  Confirmed User
                                                                                                                  • Oct 2005
                                                                                                                  • 9559
                                                                                                                  #29
                                                                                                                  The model doesn't work and never will be profitable.

                                                                                                                  I would expect the only point of the acquisition was to try to get that huge mass of visitors who are mainly kids used to using the google applications etc. to secure the dominant piece of the pie in the future - a strategical acquisition.

                                                                                                                  Also, the popular fairy tale that this was started in someone's garage is a non sense.

                                                                                                                  They had $ 8 M of financing for the start and additional investments afterwards - it's significant for the whole web 2.0. bubble that probably bursted already.

                                                                                                                  No one will ever be able to pull such a trick again.

                                                                                                                  Not to mention the whole popularity was only enabled by a loophole in the copyrights, so they could attract people to find their favorite stuff at you tube - all inclusive.

                                                                                                                  No one is really interested in Johnny from Nebraska playing guitar, everyone wants to see the celebrities, movies stars, music videos, politics, sports etc. - the real thing and real content.
                                                                                                                  Last edited by CarlosTheGaucho; 03-19-2009, 09:52 AM.
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                                                                                                                    • Libertine
                                                                                                                      sex dwarf
                                                                                                                      • May 2002
                                                                                                                      • 17860
                                                                                                                      #30
                                                                                                                      Originally posted by CarlosTheGaucho
                                                                                                                      [...]No one is really interested in Johnny from Nebraska playing guitar, everyone wants to see the celebrities, movies stars, music videos, politics, sports etc. - the real thing and real content.
                                                                                                                      http://www.youtube.com/watch?v=QjA5faZF1A8 - dude playing guitar, 57 million views.
                                                                                                                      /(bb|[^b]{2})/

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                                                                                                                        • Reak AGV
                                                                                                                          Confirmed User
                                                                                                                          • Dec 2004
                                                                                                                          • 4283
                                                                                                                          #31
                                                                                                                          I'm pretty sure YouTube turns profit

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                                                                                                                            • Paul Markham
                                                                                                                              Too old to care
                                                                                                                              • Jun 2001
                                                                                                                              • 52942
                                                                                                                              #32
                                                                                                                              Originally posted by mynameisjim
                                                                                                                              Well, Google can afford to lose money on it, but for how long.

                                                                                                                              Don't forget, they only have one profitable product and everything else pretty much loses money. You can't ride that forever. I'm not saying they are in any immediate danger, but at some point they need these things to become profitable, not just dominant.
                                                                                                                              This recession will take a long time to recover from. Companies will be going out of business while other cot their costs. Advertising on a site that can't prove it's worth money is going to find it hard to justify $750 a day.

                                                                                                                              Originally posted by Blazed
                                                                                                                              If video advertising ever kicks off like it was expected then things could change very quickly, is that not the reason they bought it in the first place because they saw video advertising as the future?
                                                                                                                              Go look at the TV stations that live off advertising then think about it on Youtube. Every clip opens with an advert, an advert every 10 minutes and all on a medium used by people who there to not spend money.

                                                                                                                              Do you see the flaw in your thinking?

                                                                                                                              It might piss off more people than it encourages. Remember it has fuck all to do with traffic. It's ALL about what that traffic spends against what it costs. Could it be some at Google think traffic is king?

                                                                                                                              In good times it's a tax loss, in bad times it's a drain.



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                                                                                                                                • HomerSimpson
                                                                                                                                  Too lazy to set a custom title
                                                                                                                                  • Sep 2005
                                                                                                                                  • 13826
                                                                                                                                  #33
                                                                                                                                  I doubt they are making profit from YT
                                                                                                                                  just because the costs are too big...
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                                                                                                                                    • mynameisjim
                                                                                                                                      Confirmed User
                                                                                                                                      • Aug 2007
                                                                                                                                      • 2985
                                                                                                                                      #34
                                                                                                                                      I have more confidence in hulu.com one day being profitable than youtube.

                                                                                                                                      If fact, I visit hulu way more than youtube. I use to visit youtube daily, but now the only time I watch a youtube video is when someone embeds it on a forum or blog or something.
                                                                                                                                      jim (at) amateursconvert . com Amateurs Convert

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                                                                                                                                        • Ron2k1
                                                                                                                                          Confirmed User
                                                                                                                                          • Sep 2001
                                                                                                                                          • 1573
                                                                                                                                          #35
                                                                                                                                          YouTube is a perfect marketing tool for Google, it's an extremely well known brand

                                                                                                                                          So Google doesn't really give a fuck about bandwidth cost.

                                                                                                                                            Comment

                                                                                                                                            • xentech
                                                                                                                                              Confirmed User
                                                                                                                                              • Jan 2006
                                                                                                                                              • 1405
                                                                                                                                              #36
                                                                                                                                              Originally posted by leek
                                                                                                                                              Google does not release YouTube's numbers publicly so everything everyone says here is just speculation.

                                                                                                                                              Here is the latest guesstimates:
                                                                                                                                              http://www.forbes.com/2009/02/24/hul...idcontent.html
                                                                                                                                              I'm pretty sure I've read from a Google blog or something that said YouTube is losing a fair bit of money at the moment but they are making steps to monetize it (like the index video ads), not exact numbers though.

                                                                                                                                                Comment

                                                                                                                                                • Twistys Tim
                                                                                                                                                  Confirmed User
                                                                                                                                                  • Apr 2008
                                                                                                                                                  • 1923
                                                                                                                                                  #37
                                                                                                                                                  Originally posted by CarlosTheGaucho
                                                                                                                                                  I would expect the only point of the acquisition was to try to get that huge mass of visitors who are mainly kids used to using the google applications etc.
                                                                                                                                                  Most of YouTube's users are in the 35 - 65 age range. Only about 13% are kids.


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                                                                                                                                                    • xentech
                                                                                                                                                      Confirmed User
                                                                                                                                                      • Jan 2006
                                                                                                                                                      • 1405
                                                                                                                                                      #38
                                                                                                                                                      Originally posted by Twistys Tim
                                                                                                                                                      Most of YouTube's users are in the 35 - 65 age range. Only about 13% are kids.
                                                                                                                                                      What leads you to believe this?

                                                                                                                                                        Comment

                                                                                                                                                        • kane
                                                                                                                                                          Too lazy to set a custom title
                                                                                                                                                          • Aug 2001
                                                                                                                                                          • 20684
                                                                                                                                                          #39
                                                                                                                                                          Originally posted by Snake Doctor
                                                                                                                                                          The big thing holding youtube back right now is the Viacom lawsuit.

                                                                                                                                                          Until the legal issues there get sorted out, and they have a clear idea of what they can and can't do, what and how they can advertise etc, they're just going to spin their wheels.

                                                                                                                                                          The case law for their business model doesn't exist yet, it's going to be decided by the judge(s) hearing this suit.
                                                                                                                                                          Yep the Viacom suit will define the future of Youtube and sites like it. If Viacom wins and is given a huge judgment Youtube will either have to adjust how it does business or close down. From what I understand Youtube and sites like it say they are just hosts and have no control over the content on it. Yet you never see porn on youtube so there must be some kind of filtering system in place that keeps it off the site. If Viacom can prove that youtube is controlling the content in any way then their DMCA safe harbor will be pretty much null and void and once Viacom wins every company or person who has stuff on youtube that they don't want there will be filing a suit. Youtube's legal bills could quickly outpace its bandwidth bills.

                                                                                                                                                            Comment

                                                                                                                                                            • kane
                                                                                                                                                              Too lazy to set a custom title
                                                                                                                                                              • Aug 2001
                                                                                                                                                              • 20684
                                                                                                                                                              #40
                                                                                                                                                              Originally posted by Twistys Tim
                                                                                                                                                              Most of YouTube's users are in the 35 - 65 age range. Only about 13% are kids.
                                                                                                                                                              Where do you get this from. I would think just the opposite that most of their users are 21 and under. Just from what I know about myself and my friends I sometimes look at youtube and some of my friends occasionally do, but their kids are on it non-stop.

                                                                                                                                                                Comment

                                                                                                                                                                • CarlosTheGaucho
                                                                                                                                                                  Confirmed User
                                                                                                                                                                  • Oct 2005
                                                                                                                                                                  • 9559
                                                                                                                                                                  #41
                                                                                                                                                                  Originally posted by Libertine
                                                                                                                                                                  http://www.youtube.com/watch?v=QjA5faZF1A8 - dude playing guitar, 57 million views.
                                                                                                                                                                  A cat with two heads is not an evidence that cats have two heads.

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                                                                                                                                                                    • CarlosTheGaucho
                                                                                                                                                                      Confirmed User
                                                                                                                                                                      • Oct 2005
                                                                                                                                                                      • 9559
                                                                                                                                                                      #42
                                                                                                                                                                      Originally posted by kane
                                                                                                                                                                      Where do you get this from. I would think just the opposite that most of their users are 21 and under. Just from what I know about myself and my friends I sometimes look at youtube and some of my friends occasionally do, but their kids are on it non-stop.
                                                                                                                                                                      Yeah, I researched it too from a verifiable source, a guy who has access to all those official paid databases about companies and news sources etc. claimed it's expected to be about 40 pct. in the age reange between 12 and 15 or something if I remember well.

                                                                                                                                                                      But you know how it is, GFY is a world of its own.

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                                                                                                                                                                        • CarlosTheGaucho
                                                                                                                                                                          Confirmed User
                                                                                                                                                                          • Oct 2005
                                                                                                                                                                          • 9559
                                                                                                                                                                          #43
                                                                                                                                                                          Originally posted by Ron2k1
                                                                                                                                                                          YouTube is a perfect marketing tool for Google, it's an extremely well known brand

                                                                                                                                                                          So Google doesn't really give a fuck about bandwidth cost.
                                                                                                                                                                          If you run a business you always care about the costs, especially if you are jewish.

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                                                                                                                                                                            • CarlosTheGaucho
                                                                                                                                                                              Confirmed User
                                                                                                                                                                              • Oct 2005
                                                                                                                                                                              • 9559
                                                                                                                                                                              #44
                                                                                                                                                                              Originally posted by Reak AGV
                                                                                                                                                                              I'm pretty sure YouTube turns profit
                                                                                                                                                                              There are also people out there, who are extremely sure that that hairy pacifist hippie who became very popular after his death was born to a virgin.

                                                                                                                                                                              Last edited by CarlosTheGaucho; 03-20-2009, 06:08 AM.
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                                                                                                                                                                                • Twistys Tim
                                                                                                                                                                                  Confirmed User
                                                                                                                                                                                  • Apr 2008
                                                                                                                                                                                  • 1923
                                                                                                                                                                                  #45
                                                                                                                                                                                  Originally posted by xentech
                                                                                                                                                                                  What leads you to believe this?
                                                                                                                                                                                  This does - http://www.imediaconnection.com/content/12474.asp


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                                                                                                                                                                                    • CarlosTheGaucho
                                                                                                                                                                                      Confirmed User
                                                                                                                                                                                      • Oct 2005
                                                                                                                                                                                      • 9559
                                                                                                                                                                                      #46
                                                                                                                                                                                      Originally posted by Twistys Tim
                                                                                                                                                                                      This does - http://www.imediaconnection.com/content/12474.asp
                                                                                                                                                                                      Interesting, but:

                                                                                                                                                                                      1)

                                                                                                                                                                                      By David Hallerman
                                                                                                                                                                                      November 17, 2006

                                                                                                                                                                                      2) US only



                                                                                                                                                                                      3) Nielsen//NetRatings

                                                                                                                                                                                      Is this not the questionnaire? Have you ever seen a kid or anyone young and pacey filling out an online survey?

                                                                                                                                                                                      Well, let's leave it to the experts!

                                                                                                                                                                                      Last edited by CarlosTheGaucho; 03-20-2009, 06:20 AM.
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                                                                                                                                                                                        • Paul Markham
                                                                                                                                                                                          Too old to care
                                                                                                                                                                                          • Jun 2001
                                                                                                                                                                                          • 52942
                                                                                                                                                                                          #47
                                                                                                                                                                                          Originally posted by kane
                                                                                                                                                                                          Yep the Viacom suit will define the future of Youtube and sites like it. If Viacom wins and is given a huge judgment Youtube will either have to adjust how it does business or close down. From what I understand Youtube and sites like it say they are just hosts and have no control over the content on it. Yet you never see porn on youtube so there must be some kind of filtering system in place that keeps it off the site. If Viacom can prove that youtube is controlling the content in any way then their DMCA safe harbor will be pretty much null and void and once Viacom wins every company or person who has stuff on youtube that they don't want there will be filing a suit. Youtube's legal bills could quickly outpace its bandwidth bills.
                                                                                                                                                                                          If Viacom lose will that be the end of it, or will it just start another suit on a different tact? They lose once they're screwed. The cigarette industry was sued many times before it started to lose.

                                                                                                                                                                                          Or am I wrong?

                                                                                                                                                                                          As for legal costs outpacing BW bills. They may already be there, ask people who have been through the US legal system.



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                                                                                                                                                                                            • Paul Markham
                                                                                                                                                                                              Too old to care
                                                                                                                                                                                              • Jun 2001
                                                                                                                                                                                              • 52942
                                                                                                                                                                                              #48
                                                                                                                                                                                              Originally posted by Twistys Tim
                                                                                                                                                                                              Most of YouTube's users are in the 35 - 65 age range. Only about 13% are kids.
                                                                                                                                                                                              No one really knows and it's acedemic. As Carlos points out online surveys reflect the people who fill in online surveys. Kids may not bother.

                                                                                                                                                                                              Look at the most viewed scenes for an indication.



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                                                                                                                                                                                                • polish_aristocrat
                                                                                                                                                                                                  Too lazy to set a custom title
                                                                                                                                                                                                  • Jul 2002
                                                                                                                                                                                                  • 40377
                                                                                                                                                                                                  #49
                                                                                                                                                                                                  Originally posted by JamesK
                                                                                                                                                                                                  Yep, I agree.

                                                                                                                                                                                                  A lot of website types have had this problem in the past. Hell, in the beginning companies didn't even know how to make money off the internet. They will find a way eventually to make huge profit off it.
                                                                                                                                                                                                  If I remember correctly, AlienQ said he knows how to make YouTube profitable.
                                                                                                                                                                                                  They should just hire him.
                                                                                                                                                                                                  I don't use ICQ anymore.

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                                                                                                                                                                                                    • CarlosTheGaucho
                                                                                                                                                                                                      Confirmed User
                                                                                                                                                                                                      • Oct 2005
                                                                                                                                                                                                      • 9559
                                                                                                                                                                                                      #50
                                                                                                                                                                                                      Originally posted by Paul Markham

                                                                                                                                                                                                      As for legal costs outpacing BW bills. They may already be there, ask people who have been through the US legal system.


                                                                                                                                                                                                      The legal costs have to be out of this world in that case..
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