Slashdot reports that Google is Losing Up To $1.65M a Day On YouTube:
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"The average visitor to YouTube is costing Google between one and two dollars, according to new research that shows Google losing up to $1.65 million per day on the video site. More than two years after Google acquired YouTube, income from premium offers and other revenue generators don't offset YouTube's expenses of content acquisition, bandwidth, and storage. YouTube is expected to serve 75 billion video streams to 375 million unique visitors in 2009, costing Google up to $2,064,054 a day, or $753 million annualized. Revenue projections for YouTube fall between $90 million and $240 million."
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I believe that because of Moore's Law some of the costs should come down over the next couple years. Google may just see a year of loses as an investment for the future. Once servers and bandwidth costs drop, they'll turn a profit.
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Technorati tags: YouTube, Google
2 comments:
I hope You Tube or something like it sticks around. In the last week, we've watched Reason TV, video of the 1989 Tiannamin Square massacre and seed propagation from an Attenbourough video that I can't find on Netflix.
Plus we've watched bits of movies that we'd gotten for school that were scratched and froze up at the critical moment of climax or resolution.
We've listened to poetry read by the author, classical music played by string groups and watched Japanese Bunraku puppet performances.
It is such a great educational supplement.
Not to mention being the source for Susan Boyle, Paul Potts, Straight No Chaser, the Ukelele orchestra and mouse in a wok.
I'm sure something like YouTube will be around. There are several other services which are trying variations of supplying internet video.
I'm pretty sure things will only get better.
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