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YouTube isn't profitable

26 points by IBM 12y ago

vacri 12y ago
Paywalled.
aaronbrethorst 12y ago
Top link on Google: https://www.google.com/search?client=safari&rls=en&q=YouTube:+1+Billion+Viewers,+No+Profit&ie=UTF-8&oe=UTF-8 https://www.google.com/search?client=safari&rls=en&q=YouTube...
- undefined0 12y ago
  For some reason, it's not working in my browser. Possibly NoScript or something? Well here is my workaround for anyone having the same problem. Click the first result at http://www.bing.com/search?q=http%3A%2F%2Fwww.wsj.com%2Farticles%2Fviewers-dont-add-up-to-profit-for-youtube-1424897967 http://www.bing.com/search?q=http%3A%2F%2Fwww.wsj.com%2Farti...
beefsack 12y ago
Paywalled, does anyone have an alternate or can provide a summary?
- aaronbrethorst 12y ago
  yeah, check the downvoted link I posted below.
cyborgx7 12y ago
>Google Inc. nurtured YouTube into a cultural phenomenon What? No. Youtube was huge before Google bought it. They bought it because they couldn't compete with it. I'd even go as far as to say that youtube kept growing despite Google's meddling, not because of it. Didn't read the rest of the article because, as others have remarked, it's paywalled. But that's not a good first impression.
thoman23 12y ago
Surprising that it's not profitable. It's still probably better than having lost a major chunk of internet traffic to another player, like they did with social networking and real-time info (i.e. Twitter).
ChuckMcM 12y ago
For me, this is the interesting quote: That is a problem still facing veteran Google executive Susan Wojcicki as she begins her second year running YouTube, one that could be tougher to solve if declining profit margins for Google overall limit her ability to invest in new content and services. As the air slowly seeps out of the search advertising business it makes it harder and harder for Google to keep non-profitable businesses alive.
- gitah 12y ago
  This is actually good news for Google. Their current YouTube ad revenues are paying for all the fixed costs right now. Any additional ad revenues for YouTube from now on will go directly to the bottom line as profit without further operational expenses. I think we'll be seeing expanding margins for Google this year. Maybe good time to load up on GOOG while analysts are disappointed at recent earnings.
  - Kalium 12y ago
    I'm not sure I agree. If YouTube is publicly seen to turn a profit, it's more likely to create a feeding frenzy by copyright-owners than it is to pad the bottom line.
noobhater1000 12y ago
what bullshit I have to subscribe to the Wall Street Journal to read the article. Fuck them.
pgodzin 12y ago
So basically, the monetization methods (skippable ads and subscriptions) are working well, Youtube just needs more people watching consistently?

26 points by IBM 12y ago

vacri 12y ago

Paywalled.

Top link on Google: https://www.google.com/search?client=safari&rls=en&q=YouTube:+1+Billion+Viewers,+No+Profit&ie=UTF-8&oe=UTF-8 https://www.google.com/search?client=safari&rls=en&q=YouTube...

undefined0 12y ago
For some reason, it's not working in my browser. Possibly NoScript or something? Well here is my workaround for anyone having the same problem. Click the first result at http://www.bing.com/search?q=http%3A%2F%2Fwww.wsj.com%2Farticles%2Fviewers-dont-add-up-to-profit-for-youtube-1424897967 http://www.bing.com/search?q=http%3A%2F%2Fwww.wsj.com%2Farti...

beefsack 12y ago

Paywalled, does anyone have an alternate or can provide a summary?

aaronbrethorst 12y ago
yeah, check the downvoted link I posted below.

cyborgx7 12y ago

>Google Inc. nurtured YouTube into a cultural phenomenon What? No. Youtube was huge before Google bought it. They bought it because they couldn't compete with it. I'd even go as far as to say that youtube kept growing despite Google's meddling, not because of it. Didn't read the rest of the article because, as others have remarked, it's paywalled. But that's not a good first impression.

thoman23 12y ago

Surprising that it's not profitable. It's still probably better than having lost a major chunk of internet traffic to another player, like they did with social networking and real-time info (i.e. Twitter).

ChuckMcM 12y ago

For me, this is the interesting quote: That is a problem still facing veteran Google executive Susan Wojcicki as she begins her second year running YouTube, one that could be tougher to solve if declining profit margins for Google overall limit her ability to invest in new content and services. As the air slowly seeps out of the search advertising business it makes it harder and harder for Google to keep non-profitable businesses alive.

gitah 12y ago
This is actually good news for Google. Their current YouTube ad revenues are paying for all the fixed costs right now. Any additional ad revenues for YouTube from now on will go directly to the bottom line as profit without further operational expenses. I think we'll be seeing expanding margins for Google this year. Maybe good time to load up on GOOG while analysts are disappointed at recent earnings.
- Kalium 12y ago
  I'm not sure I agree. If YouTube is publicly seen to turn a profit, it's more likely to create a feeding frenzy by copyright-owners than it is to pad the bottom line.

noobhater1000 12y ago

what bullshit I have to subscribe to the Wall Street Journal to read the article. Fuck them.

pgodzin 12y ago

So basically, the monetization methods (skippable ads and subscriptions) are working well, Youtube just needs more people watching consistently?