{"id":280,"date":"2009-04-06T08:20:55","date_gmt":"2009-04-06T12:20:55","guid":{"rendered":"http:\/\/webvideouniversity.com\/blog\/?p=280"},"modified":"2009-04-06T08:22:40","modified_gmt":"2009-04-06T12:22:40","slug":"youtube-expected-to-lose-470-million-in-2009","status":"publish","type":"post","link":"https:\/\/webvideouniversity.com\/blog\/2009\/04\/06\/youtube-expected-to-lose-470-million-in-2009\/","title":{"rendered":"YouTube Expected To Lose $470 Million In 2009"},"content":{"rendered":"

As a follow-up to my post last Friday, where I covered news of video sharing site Veoh<\/strong> slashing their workforce by 36%, comes news about YouTube<\/strong>, the 800 pound gorilla in the market (Google owned YouTube is responsible for approximately 41% of all video streams on the Internet).<\/p>\n

While Google has admitted that YouTube has never turned a profit, they never stated any specific numbers.\u00a0 So analysts from Credit Suisse<\/strong> went about looking over YouTube’s balance sheet.<\/p>\n

And what did they find?<\/p>\n

YouTube is poised to earn $240 million in 2009…a respectable 20% increase over the prior year.\u00a0 That’s the good news.\u00a0 Now here comes the bad.<\/p>\n

It’s projected that Google will spend $710 million<\/strong> running YouTube in 2009.\u00a0 The math is simple.\u00a0 That’s a loss of $470 million in a single year.\u00a0 Kind of like having a $710 mortgage, but making only $240.\u00a0 And roughly half of those expenses ($355 million) are for bandwidth alone.<\/p>\n

YouTube became popular because of user-generated content.\u00a0 And it’s that very content that is killing them (as well as about every other video sharing site on the Internet).\u00a0 Advertisers won’t touch user-generated content.\u00a0 In fact, only about 3% of the videos on YouTube earn advertising revenue.<\/p>\n

The analysts from Credit Suisse concluded that YouTube needs to include more paid content to remain financially viable<\/strong>.\u00a0 And Google is not blind to this fact.\u00a0 They recently announced deals with Disney and ESPN for dedicated content channels.<\/p>\n

The hope is that this infusion of cash will keep the hosting of user-generated videos do-able (you know, the 97% of videos on YouTube that do nothing but lose money).<\/p>\n

But will it or won’t it keep user-generated videos afloat? <\/strong> That’s impossible to predict.\u00a0 What is known, is that for everything Google has their hands in…nearly every penny they make still comes from only one source; Adwords<\/em>.\u00a0 That’s not necessarily a great track record for diversity.<\/p>\n

So if you’re a business owner or Internet marketer who believes (or has been led to believe) that YouTube is the holy grail for traffic and profits, the question is this; what will you do if YouTube (and others like it) fail?<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

As a follow-up to my post last Friday, where I covered news of video sharing site Veoh slashing their workforce by 36%, comes news about YouTube, the 800 pound gorilla in the market (Google owned YouTube is responsible for approximately 41% of all video streams on the Internet). While Google has admitted that YouTube has […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[19,6],"tags":[24,22],"_links":{"self":[{"href":"https:\/\/webvideouniversity.com\/blog\/wp-json\/wp\/v2\/posts\/280"}],"collection":[{"href":"https:\/\/webvideouniversity.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/webvideouniversity.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/webvideouniversity.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/webvideouniversity.com\/blog\/wp-json\/wp\/v2\/comments?post=280"}],"version-history":[{"count":0,"href":"https:\/\/webvideouniversity.com\/blog\/wp-json\/wp\/v2\/posts\/280\/revisions"}],"wp:attachment":[{"href":"https:\/\/webvideouniversity.com\/blog\/wp-json\/wp\/v2\/media?parent=280"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/webvideouniversity.com\/blog\/wp-json\/wp\/v2\/categories?post=280"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/webvideouniversity.com\/blog\/wp-json\/wp\/v2\/tags?post=280"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}