10th
YouTube Makes Money?
I’ve always wondered if YouTube makes money, so I was interested to randomly see this quote:
Estimates for YouTube’s ad sales range from $120 million (Screen Digest) to $500 million (Jeffries & Co.). In its 2008 annual report, Google said it “has yet to realize significant revenue benefits” from its $1.65 billion acquisition.
I guess I’ll need to look for an estimate for how much it costs to serve (and store) all of YouTube’s videos… There’s one estimate in the article:
YouTube users upload 15 hours of video every minute of the day; in a real sense, the company is providing bandwidth and hosting services to much of the world for free, at a cost Credit Suisse estimates at $1 million a day for bandwidth alone.
So… maybe break-even? Oh wait, not even close… Because that’s $120-500 million in revenue — and YouTube has to share a lot of its revenue with its content partners, etc..
