Saturday, July 12, 2008

YouTube monetizing

I'd have thought that by now big Internet companies would have found a solution to losing money big on big "successes". I could understand it in the nineties when the Net was new and everything was experimental. Wikipedia sez:
"As of Q1 2008, YouTube is not profitable, with its revenues being noted as "immaterial" by Google in a regulatory filing. Its bandwidth costs are estimated at approximately $1 million a day. It is estimated that in 2007, YouTube consumed as much bandwidth as the entire Internet in 2000."

You'd think that even Google would try to offset a cost like a million bucks per day somehow. Like with the very successful Adwords program. Shouldn't be tough to include a couple of Adwords ads on each page. ... Hmm, of course adwords are for Google's customers, not for Google. I dunno. But it's a strange kind of loss leader, especially since they paid 1.65 Billion dollars for it. It must be important to them somehow.

No comments: