YouTube can't pay it's hosting bills!
 

I mean, it doesn't seem like it should be able to make enough money to cover the hosting costs for that massive amount of free video.

It's all distributed by a mainstream CDN hosting company so you know the bandwidth costs waaay more than what we pay in porn.

How does this company make enough money to survive?

Advertising?

Ive always thought of that I cant imagine their bandwidth bill.

where did you find out they could not pay for hosting, dident they get 3.5 M few weeks ago

JAY

There is lots of value in becoming THE video destination right now.

Of course, my money is on www.VEOH.com (They use a kickass peercasting system so not only do you get that shitting flash video, but you can download the full screen version/ipod version, etc.)

...and they allow porn. :)

Right now they have investment, 3Mill+ worth. They are going to pay hosting with that right now. They have plans to sell advertisement later this year. This is what i heard.

Video sites are sinking ship, trust me. I will turn in to tgp of mainstream soon.

I said, 'I mean, it doesn't seem like it should be able to make enough money to cover the hosting costs for that massive amount of free video.'

Nevermind the headline.


Still, I'm talking about revenue coming in. Where is it coming from and how can it be enough to justify the bandwidth and equipment costs? Are they goign to switch all the videos to commercial ad inserted vids at some later date? I don't get this biz model.

lol now this couldn't help in your opinion now could it.. :winkwink:

http://www.veoh.com/videoDetails.htm...=Most%20Recent

Interesting site, I've said it for a long time that the interweb would soon allow small companies to produce their own television stations. I see the internet as taking the place of general TV production.. I think we will start seeing mega sites with their own unique programing.

I agree Hal. Veoh came in the door with the right plan. They aren't figuring it out as they go along like YouTube seems to be and they are taking the lead with the plan Google promised but still hasn't delivered. All of that with a cutting edge delivery platform. It should work if Google and Yahoo don't move quickly and steal their sunshine.


YouTube reminds me of a 2000 bubble type company. Has anyone seen an ad?

lol and who's this? http://www.veoh.com/videoDetails.htm...=Top%20Rat ed

i think youtube.com is getting insanely popular right now but they need to work on the getting the vids to play better, they always seem to stop after 1 sec of watching it...

heh heh

I know the CEO very well and have done consulting for Veoh. Since I have been helping shape what it becomes...I'm DEFINITELY biased. :)

http://pinkgasm.citizensex.com/sprea...ots/sxsw06.jpg

nice Hal! I need to check that out, hopefully it will catch on more than youtube.com.

Actually here are some links about youtube.

They got 3.5Mill from Sequoia Capital.

http://www.marketwire.com/mw/release...ease_id=100442

Below is a article about youtube, where it talks about advertising. Snip from article "But when it comes to potentially infringing content, things get even trickier when YouTube starts trying to make real money?which it hopes to do later this year by selling its own ads on the site. That could aggravate its already shaky legal status."

http://www.msnbc.msn.com/id/11617588/site/newsweek/

They did have a yahoo ad before though. It only comes when you search for something, like below. I guess they removed that too.

https://youtube.com/results?search=ladypat

Yeah, you're right LOL! Obviously a guy who drives his dad's used mustang and lives in an apartment with a bunch of other teenagers has an absolute grasp on what is going on in this new emerging industry. I'm sure Sequioa capital are all idiots and they are just throwing their money away hahahaa!

I think you should really start talking on panels, you really should! :1orglaugh

DH

Thanks man, i will. How does tomorrow sound? lol

I talk about video sites and you talk about...i dont know, fighting with people half your age.

They have enough vc to keep them afloat till this is ready ;-)

http://i2.tinypic.com/rk906q.jpg

heh.. yeah, the ammount of investment $ going to video / IPTV companies right now is insane. I just got back from the SXSW interactive festival and everyone kept saying, "The Bubble is Back!"

DH and me going to talk on a panel. YEAHHHHHHHHHH! :1orglaugh :1orglaugh

I''ll bring some weed, you bring your masive head, DH. LOL

Just check who the owners are :)
They can afford to run a year without ads.

Definatly a bubble with all this web 2.0 companies. BUT if you have something that is making money you dont have to worry about the bubble

wow your almost as much of an ass as sleazy dream, your soooo cool mark.

Everyone is smarter now. So "bubble" is a more of a joke. But the money has returned, and there will be a huge lots of people are banking on a huge media shift.

HaHa thats cute

You do realize how Venture Capital Firms operate right? That's exactly what they do. They invest in 100 "ideas" hoping at least one works. If it does, it'll more then payoff for the losses in the ones that didn't. YARGH! :1orglaugh

No because getting a customer base is for more important than any money they would make on ads right now. www.wimp.com

If you can't understand how having that many loyal members is worth way more than a few ad dollars in the meantime you need to restudy business. Look how much MySpace sold for simply for their userbase.

how much money do you think google brought in compared to its hosting bill for the first 3 years

nuff said..

They appear to be ocationally selling the top video spots on the front page. Last week MTV was up there advertising Andy Milonakis, but it wasn't a regular commercial.

That is probably going to be a major revenue source for these sites once the user base gets up there.

I disagree. I believe thier userbase is as fickle as fickle gets. A Myspace comparison is inaccurate because they are far from a social networking site that people use to contact their friends and thus makes them sticky and relevant.

Once they switch to an ad based economic model that inserts 10 second commercials before 30 second clips the users will switch to the next free service which is always right around the corner. I can point to 20 new ones right now if you think they won't exist.

On the other hand, Veoh getting in the game and going for the jugular with the movie studios, indie filmmakers, broadcasters and so on is putting them ahead of the pack. All they have to do is line up a few big names and their publicity will shoot them ahead of YouTube. Especially in profitability.

Both are an IF proposition at this point but I would bet on Veoh only because they have a head start on making the money deals happen now.

At the very least if Veoh is porn friendly they will put the VOD companies out of business fast and make a mint in that arena.

VOD is dead. I'd hate to work at one right now. They have to be nervous.

I like this thread
Chio I think the numbers more like 10 ish HEHE
Chadglini is wimp yours? I have seen it popping up all over lately

I hear ya Smokey but name more than 2 relevant search providers that did the same thing on their main page (simple non ad filled search) during that time of their ascent. All I can think of is spamfilled, complex and irrelevant results across the board.

Still, I think this space is a bit different. People would easily switch to Google vids and Yahoo's new video play if YouTube changes thier secret sauce in the least bit.

You are the only one saying they will put commercials on videos, I don't see it. Mainstream is not adult. One more time, mainstream is not adult. www.break.com has been around awhile, with ads, and none of them are commercials on the videos. If you don't think video sites are sticky you must not understand them either. It's hard to unstick a site when their links are on hundreds of thousands of other sites and spread by word of mouth constantly. Hell they are posted here daily. Damn good market to get into and worth many many millions.

No it's not mine, just somebody else with the resources and foresight to get into this market when the time is right.

You nailed it right there. Even if they put 30 second ads in front they would still have 1000's and 1000's of links all over the net.

And seems everyone missed this


http://i2.tinypic.com/rk906q.jpg

i think quite a few started advertising ( making money) quicker , thats why they arent as big.. yahoo sold additions to its index and thus creating a not-so-relevent engine. The longer you can afford to give stuff/services away for free , the longer you can stronghold the market, the person who holds on longest wins..:thumbsup i think that theory stands for most things.. its also why google is starting to "lose their thrill" for some people , they have reached that threshhold where they are actually making money now :)

yahoo is already putting commercial clips in front of the videos on it's front page so that if you want to watch a video you gotta sit through a 30 second commerical first...

Yup, the insert-commercial-into-video routine is part of the plan. Actually, it's part of the whole plan of Web 2.0. Check out the popularity of www.brightcove.com for more insite on that.

I think we are 2 more years away from bandwidth being cheap enough to not have to over advertise to see profits. A Gig-E is down to $13k right now, but these mainstream guys still aren't getting that. They still overpay.

They are in bed with aol and macromedia too hehe.

I wish there were private forums here. Alot of good stuff we could talk about :)