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I can't remember where I read this, but as far as I understand, Google is still losing money on YouTube.
by diminoten 13y ago
I can't remember where I read this, but as far as I understand, Google is still losing money on YouTube.
- fragmede 13y ago"The video site should generate more than $3.6 billion in gross revenue" [in 2012] http://allthingsd.com/20120621/youtubes-gigantic-year-is-already-here-citi-says/ http://allthingsd.com/20120621/youtubes-gigantic-year-is-alr... They might still be 'losing money', but 3.6 billion/yr is plenty of money coming in.
- username223 13y agoI'm not sure how this matters. I could make infinite gross revenue handing out money to people who agreed to give me half of it back right away. Call it "Bitcoin", and I could even manufacture it myself, turning the gross into net!
- nl 13y agoIt matters because there is a clear path to profit (unlike the "give away money" model). The market sees it like this: Their costs are high because they (Google/Youtube) are investing to support high growth. At some point the growth will taper off, and so will the investment (because you invest to support larger numbers in the future), but the money keeps rolling in. Google has deep enough pockets to invest in that for a long, long time.
- danmatan 13y agoI'll bet they'll never attribute the value to Youtube that comes from being able to better target ads off-Youtube based on your Youtube views. Youtube might lose on paper, but generate more value in total for Google than direct costs. Google also gets a whole pile of AV to do speech-to-text and other analysis on (before any additional compression) that no other firm gets a chance to do.