Connect with us

Hi, what are you looking for?

Google

Google Losing Up To $1.65 Million a Day on YouTube

Income from premium offers and other revenue generating programs don’t offset YouTube expenses of content acquisition, bandwidth, storage, and other costs, calculations show

It must have seemed a smart idea when Google paid $1.65 billion for YouTube in 2006. But more than two years later, Google is losing as much as $1.65 million a day on the Web’s most popular video site, according to calculations and analysis from Internet Evolution.

You can read the full report here:
http://www.internetevolution.com/author.asp?section_id=715&doc_id=175123

“The average visitor to YouTube costs Google between one and two dollars,” said Internet Evolution Editor in Chief Terry Sweeney, citing the estimated $513 million to $663 million in annual YouTube losses divided by its 375 million unique visitors. The report, written by David Silversmith, drew from a variety of sources, including Bear Stearns, comScore, Credit Suisse, and Google itself.

“Google is, in effect, paying YouTube consumers to visit the site, despite premium offers and other revenue-generating programs that can’t keep pace with the site’s expenses — content acquisition, bandwidth, and storage, to name a few,” Sweeney said. How long Google expects to continue subsidizing the site or when it expects to break even is less clear. YouTube refused comment on the problem.

Google’s plans to serve up advertising on YouTube have had limited success. YouTube sells homepage roadblock ads that cost $175,000 per day and branded channels at $200,000 apiece; neither has been widely deployed, according to the Internet Evolution report. Google AdWords image advertising remains the primary revenue source for YouTube.

Advertisement. Scroll to continue reading.

About Internet Evolution
Internet Evolution (www.internetevolution.com) hosts more than 140 world-famous Internet experts — such as Kevin Mitnick, once the most-wanted computer hacker in the world; Dr. Lawrence Roberts, inventor of packet switching, and one of the world’s foremost authorities on telecom network architectures; Vint Cerf, Vice President and Chief Internet Evangelist for Google; and Craig Newmark, the founder of Craigslist.com — all of whom are addressing today’s critical socio-economic issues within its ThinkerNet blogosphere. In March 2009, Internet Evolution won three prestigious Min’s Best-of-Web awards, including Digital Team of the Year, Best Community/Social Networking Site, and Best B2B Magazine-Branded Video.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Advertisement

Our Reviews

HiFiMAN

$349 open-back headphone will amaze first time listeners who have never tried planar magnetic headphones.

Headphone Amps

For only $99, the Magni 3+ is a fully discrete, current-feedback headphone amplifier that's extremely quiet and powerful enough for the vast majority of...

Integrated Amps

Depending on your budget, the $449 NAD C 316BEE V2 might be the ideal stereo integrated amplifier to build a hi-fi system around.

Phono Preamps

Review and comparison of three phono pre-amplifiers priced under $1000 from Croft Acoustics, Pro-Ject and iFi Audio that sounded exceptional, yet nothing alike.

Bookshelf Speakers

The new Lumina collection brings the artistry of Sonus faber loudspeakers to a much wider audience for a lot less money.

Reviews

BDI sets a high bar with another modern media console designed to conceal all your electronics and a sound bar in an elegant ventilated...

You May Also Like

Google

Google’s Flagship 5.7- or 6.3-inch Smartphones for 2019 Google just announced the Pixel 4 (5.7-inch) and Pixel 4 XL (6.3-inch) smartphones which each debut...

Google

Google Pixel Buds are smart wireless earphones with improved voice control functionality, extended range with Bluetooth 4 and higher quality audio.

Google

Google announced their latest and best smartphones called the Pixel 3 and Pixel 3XL for 2018. Each phone keeps the same dimensions as Pixel 2...

Google

Google just announced wireless headphones called Pixel Buds that do more than just help you listen to music wire-free. The $159 Bluetooth earphones pair...

Advertisement

ecoustics is the unbiased resource for the latest technology news, coolest gadgets, and best consumer electronics. Plus get product reviews, roundups and deals from all over the web on everything electronic. Read more



Copyright © 1999-2020 ecoustics | Disclaimer: ecoustics may earn a commission when you buy through links on our site.