4 ms·
Lots of people want YouTube and it is on track to lose nearly $500 million this year. The fact that Google bought it doesn't mean they've created a business.
by wschroter 17y ago
Lots of people want YouTube and it is on track to lose nearly $500 million this year. The fact that Google bought it doesn't mean they've created a business.
Build something people want. That's not good enough.
Build something people will pay for. That should imply enough want and will keep you around long enough to keep providing it.
- diN0bot 17y agoBuild something someone will pay for.
- zaidf 17y ago"The fact that Google bought it doesn't mean they've created a business." A business can lose money and still remain a business, even a great one. Companies go public all the time while in the red. And that $500M figure you have for YouTube is the epitome of fuzzy-math.
- zackattack 17y agoAmazon.com lost money for 7 consecutive years before first posting a profit in Q4 2001.
- defen 17y agoThat was all part of the business plan though - there was a light at the end of the tunnel, and they knew what it was. Whereas I don't think anyone knows how to make money off of YouTube.
- zaidf 17y ago"In June 2008 a Forbes magazine article projected the 2008 revenue at US$200 million, noting progress in advertising sales." We know two things for sure: a) youtube IS making money b) youtube is making money in tens of millions. What we don't know--and what makes the argument that YouTube is a financial burden on google very difficult to prove--is the knowledge of YouTube's expenses.
- wschroter 17y agoI would definitely agree that there is a time and a place to debt-spend your way to profitability. But consider the fact that some companies, even once they have hit the ball out of the park with thier original goal, still have no way to be profitable doing it. At some point YouTube becomes a public service charity, not a business.