YouTube estimated to lose $470mil in '09

Discussion in 'Digital Video' started by LethalWolfe, Apr 19, 2009.

  1. LethalWolfe macrumors G3

    LethalWolfe

    Joined:
    Jan 11, 2002
    Location:
    Los Angeles
    #1
    Slate.com: Do You Think Bandwidth Grows on Trees?

    The whole article is very good an illustrates that being popular isn't the same thing as being profitable. And while popular is good, it doesn't pay the bills.


    Lethal
     
  2. Dr.Pants macrumors 65816

    Dr.Pants

    Joined:
    Jan 8, 2009
    #2
    Damn. Well, Youtube is going to have to innovate; I would expect the layout to most defiantly change. Maybe Youtube/Google would start charging for video uploads after a certain amount of space got taken up on their server, for example. Or paying to link a video to w/e webpage. Still, its had a good run. I'd prefer it over other streaming video sites.

    EDIT - just saw page two, and I'm practically repeating the last two sentences. Still, YouTube IS going to have to change to remain a service
     
  3. 11800506 macrumors 65816

    11800506

    Joined:
    Oct 31, 2007
    Location:
    Washington D.C. Area
    #3
    There was an article similar to this in the NY Times (I think) sometime in the last week. They mentioned that bandwidth costs outweigh advertising revenue. The article also mentioned how Youtube only puts ads on pages with commercial content.

    With the decrease in revenue, I think soon we'll start to see Youtube putting ads in more places to further proliferate them throughout the site.
     
  4. jayeskreezy macrumors 65816

    Joined:
    Mar 3, 2005
    #4
    They should take note from Vimeo...just limit the amount someone can upload weekly to 500mb and charge for people to do more than that....call it a premium acct. :)
     
  5. LethalWolfe thread starter macrumors G3

    LethalWolfe

    Joined:
    Jan 11, 2002
    Location:
    Los Angeles
    #5
    From what I've read they are trying to get more deals w/studios to stream content legally. Ad revenue only works if advertisers want to attach their logo to your product and your customers want to sit thru ads. Neither really seems to be the case for YouTube.


    Lethal
     
  6. mikeinternet macrumors 6502a

    mikeinternet

    Joined:
    Nov 1, 2006
    Location:
    Oaklnad, CA
    #6
    I've been hearing the same thing.

    How is Hulu making out?
     
  7. LethalWolfe thread starter macrumors G3

    LethalWolfe

    Joined:
    Jan 11, 2002
    Location:
    Los Angeles
    #7
    Financially speaking Hulu, which turns a profit, is doing vastly better than YouTube. The whole legal, online video thing is still just a tempest in a teapot really. IIRC only about 1% of people watch their TV shows and/or movies online and online distribution accounts for just a fraction of a percent of the revenue of a major movie studio. This numbers will of course change in time, but people claiming the studios and networks "don't get it" aren't being realistic. "Old media", in terms of video, still generates insanely more money than "new media" does so companies aren't going to ditch profits for loses just so they can be on the bleeding edge of technology.


    Lethal
     

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