YouTube Losing Money
April 6, 2009 – 7:47 amRecently a lot of talk surface about whether Google should buy Twitter, the fast growing social website. But now some are questioning the wisdom of such a move because the acquisition of YouTube still hasn’t proven profitable for Google.
In fact, the losses are enormous.
But here’s the thing: the site by Wang’s estimates continues to lose an enormous amoung of money. He calculates that YouTube in 2009 can generate $240.9 million in revenue, through a combination of home page ads, in-video overlay ads, banner ads, sponsored videos and sponsored links. That would about a 20% increase from the $200 million in revenues he estimates YouTube generated in 2008. But he also estimates that the costs of running the site – bandwidth, content acquisition and licensing and other costs – this year will be about $711.3 million. Ergo, he estimates the site this year will lose a whopping $470.6 million.
Considering the current business climate, it’s questionable whether Google would be willing to lay out a significant amount of money for Twitter, despite the potential for the service.
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3 Responses to “YouTube Losing Money”
Wow, I did not know that youtube was losing that much money… I had always considered them profitable as many users were going there but seriously i did not know where they were getting the money from…
Well then… In order to profit either youtube has to change their policies or get shut down… Which i would not mind since i used to spend a huge amount of time on watching clips on youtube that i could’ove used for something else… =\
By Orc on May 31, 2009
Youtube is my super favorite website. I cant spend a day without watching music videos on Youtube.
By Krista Ranillo on Nov 19, 2009
Youtube is one of the best Web 2.0 service on the internet today. I really love watching music videos and funny video clips on Youtube.
By Beautiful Girls Gallery on Jan 3, 2010