YouTube Set to Lose $470M

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If you think YouTube is making money hand over fist, you'd be wrong, dead wrong. At least that is what one analyst is saying. Not only does YouTube lose money, according to a Credit Suisse analyst, they lose it in a huge way.

For a site that generates as much online traffic as YouTube, it would seem a no-brainer that profit is streaming in. But according to a Credit Suisse analyst, the most popular video Web site — owned by the richest Web site Google — will lose $470 million this year because it sells advertising only on a fraction of its pages.
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Thats probly just what there losing on not advertising on those pages...
 
So that's what, about thirteen cents in real world terms nowadays compared to what Google itself pulls in on a daily basis, right? :D

Not even pocket change, more like pocket lint...
 
To my understanding, Youtube (and high-value sites like Facebook) has yet to have a "profitable" year. Their valuations take into account their potential, which, given the large volume of visitors, far exceeds the immediate losses.

I'm sure they'll figure something out, though, to make this thing ridiculously profitable. Either that or they'll use it to take over the world somehow. Google = Skynet beta
 
Well if those steaming websites all start to be like pay per view or monthy subscriptions people will stop using them. Online business is a hard task.
 
having watched the likes of Napster & Morpheus come & go, the vaporization of youtube sooner rather than later will not surprise
 
I'm not surprised. They will have a hard task ahead of them to turn that boat around. They have a lot of individuals upload junk videos or bloated videos, or simply re post videos, consuming bandwidth and resources.

The problem for them is that there are too many willing to fill the void.
 
This is not a suprise, and I still dont know why google bought it. Maybe they have a long term plan we can only barely comprehend.
 
google does a lot of things to diversify. Unlike microsoft, they're literally a one trick pony (selling tons of ads) and hence always seeking for other possible sources of revenue
 
If youtube starts making money it will then be useless and people will move on to something else.
 
I'm not sure if Youtube is meant to make money, but rather to give Google larger presence, which in turn will promote their search engine, promote their browser, promote their services.

Look at the .NET framework. Does Microsoft make money out of "licensing" this framework and associated languages (VB .NET, C#, ASP .NET) for usage? I don't think so, but what it does is give Microsoft a competitive advantage in the developer space, which then gives them a competitive advantage in the user space, tying into their operating systems and services.

When people look at a service, they have to stop thinking about money money money. It's not just about that. In the real world, we don't exchange money, but rather, we exchange desires. If we want to do something, and there's something that costs money but provides us with that service, we'll pay money for them (most direct way of business) and in return for acquiring the possibility to fulfill this desire, we relinquish the possibility of fulfilling another desire (with the money we've just spent).
 
All googletube needs to do is offer an Adults only section and charge a $5-$10 monthly fee.
 
Monkey God said:
This is not a suprise, and I still dont know why google bought it. Maybe they have a long term plan we can only barely comprehend.
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At the time Google thought it would be easy for them to make money from as they seen it was starting to get a lot of traffic. The same as for the social networking sites. People thought they would be able to have money pooring in so they rushed out and bought them up before they ever had a clue how to make money.

Cyrilix said:
I'm not sure if Youtube is meant to make money, but rather to give Google larger presence, which in turn will promote their search engine, promote their browser, promote their services.

Look at the .NET framework. Does Microsoft make money out of "licensing" this framework and associated languages (VB .NET, C#, ASP .NET) for usage? I don't think so, but what it does is give Microsoft a competitive advantage in the developer space, which then gives them a competitive advantage in the user space, tying into their operating systems and services.

When people look at a service, they have to stop thinking about money money money. It's not just about that. In the real world, we don't exchange money, but rather, we exchange desires. If we want to do something, and there's something that costs money but provides us with that service, we'll pay money for them (most direct way of business) and in return for acquiring the possibility to fulfill this desire, we relinquish the possibility of fulfilling another desire (with the money we've just spent).
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That is different. First off, yes microsoft does charge you for VB.net and all of those as you have to buy Visual Studio, at least to use it comerically you do. They now offer the free express versions but those are just for learning more or less. But the framework is free just like DirectX is free. But neither of those is like myspace, youtube or anything like that. All those online services actually are meant to be making money. Otherwise they wouldn't put ads on them. Just like hardocp is here to make money, not just be be a place where we can all come post and read articles. The problem is that the only time youtube, myspace or facebook every made anyone made was when the orginal creators first sold the sites for crap loads of money due to somebody thinking they would be able to make more money off of their investment. But now they can't figure out how to, its not that they don't want too.
 
Omegas said:
psst, they have one...
it's called
youporn
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That's not a youtube company. There are tons of sites that do what youtube does with teh pr0no but Youtube being THE name in online video if they had the service they would dominate.

It's easy Youtube can have the adult section and though it will affect their "name brand" slightly, there is still googlevideos which is the same damn thing. This would allow Google who owns both to leverage Youtube to make money all the while the people that are turned off from youtube for having adult content, will migrate to other sites, and Googlevideo is the next biggest thing I know of. And let's face it most non internet savy people don't have a clue that Google owns youtube.
 
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