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How does Youtube make money?

J

JS80

Lifer
I don't see any monetizable pages. Do they even generate any revenue? Their bandwidth bill must be huge.

edit: i adblock google ads!
 
bad thing is people like me do not click on any ads.. i feel bad but i just dont have the time... i heard the guy is being sue.. is that true ?
 
Someone posted recently that their bandwidth bill is in the millions of dollars, I think that was per MONTH.
 
Originally posted by: GrammatonJP
bad thing is people like me do not click on any ads.. i feel bad but i just dont have the time... i heard the guy is being sue.. is that true ?
Click to expand...

yes
 
Relevant article. I'll post some interesting parts.
YouTube teamed with NBC in a marketing and advertising pact on June 27 [2006].
...
IDC forecasts that online video services will generate $1.7 billion in revenue by 2010, up from $230 million in 2005.
...
Although YouTube hasn't outlined its business model yet, its NBC deal could provide a blueprint for future sponsorship arrangements. NBC will promote its fall network lineup on a new "NBC channel" on YouTube's site.
...
But Martin says the leading startups in the market, notably YouTube, will face significant challenges making money. "YouTube has developed its reputation by offering free content," he explains. "To wean users off that is difficult. The NBC deal is a step in the right direction, but at the end of the day making money will require a culture change." Terms of the NBC-YouTube deal were undisclosed, but Martin says it's likely to be more of an experiment for NBC than a profit opportunity for YouTube.

Whitehouse agrees. While advertising revenue for online video may be significant in the future, startups like YouTube and Guba have to pay for the bandwidth to deliver content today. YouTube has reportedly raised $11.5 million in venture capital funding from Sequoia Capital, but "their bandwidth usage is enormous. And bandwidth costs money," says Whitehouse. "It's unclear what the long-term business strategy is and how long they can sustain their current burn rate [of expenditures]."
Click to expand...
 
Originally posted by: LoKe
Originally posted by: Mucho
I doubt they can make one million a month from ads alone.
Click to expand...

Millions of users browse that site. One million clicks at a return of $1. O_O
Click to expand...

lol, who pays $1 per click??

I'm gonna start a crappy porn site and just get $1 click throughs.
 
it will be a matter of time before they provide higher quality videos where you would have to pay for them
similar to google videos.

 
Originally posted by: OS
Originally posted by: LoKe
Originally posted by: Mucho
I doubt they can make one million a month from ads alone.
Click to expand...

Millions of users browse that site. One million clicks at a return of $1. O_O
Click to expand...

lol, who pays $1 per click??

I'm gonna start a crappy porn site and just get $1 click throughs.
Click to expand...
I already did that and retired off of it. PM for details.
 
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