Is YouTube Profitable?
December 19, 2007
Mark Glaser asks. My answer: It doesn't matter. What matters is that Google owns the most important distribution network for video on the planet. The rest will follow.
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Comments
Just like napster was the most important music distribution service in the world for a while. I'm not saying YouTube will die but I don't think it will maintain anywhere near its importance now that the content owners are getting a clue and not putting up with them. Since hulu launched I go there a lot more than youtube.
I don't think so.. Google is a giant, but it's not the only one...
The bandwidth for youtube must cost an absolute fortune! Saying that the adverts must be generating a lot of money too. I dont really like youtube, all of the videos are very poor quality anyway.
Advertising on YouTube is fairly successful though! I picked it up on a blog... http://www.jamesbrausch.com I think!
*snifs a bubble
I used to think the Viacom suit might damage Google, but now I think they were wise to take on YouTube with all of its risks. It just makes their service more versatile to more users.
John - couldn't disagree more strongly with you here. I agree that something doesn't need to be profitable for a short while during a ramp up or branding stage, but you can't keep funneling cash into something that isn't giving you returns - especially since Google's public. While investors are giving it a free path at the moment, that will change one day. Serge and Larry don't own it anymore. Now maybe YouTube is profitable, maybe it's still in its grace period, and maybe Google will one day make up its investment on it - but nothing can be a sink hole forever.
Serge and Larry don't own it anymore. Now maybe YouTube is profitable, maybe it's still in its grace period, and maybe Google will one day make up its investment on it
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