Google Losing Up To $1.65M a Day On YouTube

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  • tranza
    ICQ: 197-556-237
    • Jun 2003
    • 57559
    #1

    Google Losing Up To $1.65M a Day On YouTube

    From the Slashdot site:

    The average visitor to YouTube is costing Google between one and two dollars, according to new research that shows Google losing up to $1.65 million per day on the video site. More than two years after Google acquired YouTube, income from premium offers and other revenue generators don't offset YouTube's expenses of content acquisition, bandwidth, and storage. YouTube is expected to serve 75 billion video streams to 375 million unique visitors in 2009, costing Google up to $2,064,054 a day, or $753 million annualized. Revenue projections for YouTube fall between $90 million and $240 million."

    Source: http://news.slashdot.org/article.pl?.../04/14/1630239

    I wonder when we are going to start seeing more and more Tube sites closing simply because they are not profitable. If Google can't make this business model profitable, nobody can.

    I'm just a newbie.
    Tags: None
    • HorseShit
      Too lazy to set a custom title
      • Dec 2004
      • 17513
      #2
      If they charged people $5 a month they would make a killing

        Comment

        • cherrylula
          lol
          • Jan 2002
          • 15969
          #3
          interesting...

            Comment

            • tranza
              ICQ: 197-556-237
              • Jun 2003
              • 57559
              #4
              Originally posted by Justin
              If they charged people $5 a month they would make a killing
              If thy charged $5/month quite a lot of people wouldn't use that site.
              I'm just a newbie.

                Comment

                • HorseShit
                  Too lazy to set a custom title
                  • Dec 2004
                  • 17513
                  #5
                  Originally posted by tranza
                  If thy charged $5/month quite a lot of people wouldn't use that site.
                  that's true but most people would pay it or have their parents pay it, if you're the kid who's not paying $5/month for youtube you're not cool

                    Comment

                    • Zyber
                      Confirmed User
                      • Aug 2001
                      • 832
                      #6
                      YouTube is part of Google's data mining project. While it may seem that YouTube is losing money, it is part of a bigger plan. To create extremely detailed user profiles of our habits and preferences. This data collection is done to serve us very targetted advertisements, whereever we are. To say it in another way; Google wants to know what we are thinking - and make profit from that.

                        Comment

                        • marketsmart
                          HOMICIDAL TROLL KILLER
                          • Dec 2004
                          • 20419
                          #7
                          Originally posted by tranza

                          I wonder when we are going to start seeing more and more Tube sites closing simply because they are not profitable. If Google can't make this business model profitable, nobody can.
                          does anyone here understand the concept of extended roi?

                          trust me, google is not failing at the tube business..

                          google owns the market by a long shot and will continue to implement new ways to monetize the eyeballs..

                          also, google may not need to ever have youtube profitable if the cdb is made up in other avenues like data mining, etc...

                            Comment

                            • Manowar
                              jellyfish  
                              • Dec 2003
                              • 71528
                              #8
                              i'd say that estimate is way off, google will have killer deals on the bandwidth

                                Comment

                                • Iron Fist
                                  Too lazy to set a custom title
                                  • Dec 2006
                                  • 23400
                                  #9
                                  Information on you is worth more than you think, and it's worth making it a loss leader, when you can make it back somewhere else, which i'm sure they do.
                                  i like waffles

                                    Comment

                                    • Joshua G
                                      dumb libs love censorship
                                      • Jul 2008
                                      • 8198
                                      #10
                                      what data do they collect that is worth spending hundreds of millions of dollars per year? Youtube asks for very little PII - An email address & a user ID. So they can target ads to me based on my video tastes. Big deal. Those ads are not testing well, & they haven't been able to adequately monetize the traffic stream. These are high IQ people over at google, smarter than microsoft. & they can't make money off youtube.

                                        Comment

                                        • Manowar
                                          jellyfish  
                                          • Dec 2003
                                          • 71528
                                          #11
                                          Originally posted by joshgirls
                                          what data do they collect that is worth spending hundreds of millions of dollars per year? Youtube asks for very little PII - An email address & a user ID. So they can target ads to me based on my video tastes. Big deal. Those ads are not testing well, & they haven't been able to adequately monetize the traffic stream. These are high IQ people over at google, smarter than microsoft. & they can't make money off youtube.
                                          the only way youtube would make money is ads pre-roll, but it could their user base down significantly

                                            Comment

                                            • sortie
                                              Confirmed User
                                              • Mar 2007
                                              • 7771
                                              #12
                                              Originally posted by Manowar
                                              the only way youtube would make money is ads pre-roll, but it could their user base down significantly
                                              Consider that youtube videos have the effect of causing people to search
                                              for more info. Guess where they search?

                                              Big Mike's Pub is losing money on the free peanuts and popcorn?
                                              NOT!!
                                              People just get more thirsty.

                                                Comment

                                                • Zorgman
                                                  Confirmed User
                                                  • Aug 2002
                                                  • 6103
                                                  #13
                                                  I don't know why youtube dont work on post roll adverts. Before the video starts.
                                                  ---

                                                    Comment

                                                    • Pleasurepays
                                                      BANNED - SUPPORTING TUBES
                                                      • Aug 2002
                                                      • 11913
                                                      #14
                                                      its comical how everyone desperately wants to believe that somehow allowing free streaming video online is going to fail... or that google is even trying to profit with youtube.com directly.

                                                        Comment

                                                        • Manowar
                                                          jellyfish  
                                                          • Dec 2003
                                                          • 71528
                                                          #15
                                                          Originally posted by sortie
                                                          Consider that youtube videos have the effect of causing people to search
                                                          for more info. Guess where they search?

                                                          Big Mike's Pub is losing money on the free peanuts and popcorn?
                                                          NOT!!
                                                          People just get more thirsty.
                                                          Good point, I suppose when it's google, it all counts

                                                            Comment

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