What Does YouTube Make …. And Spend?
The fifth most popular web brand online with an estimated 83 million visitors in February – that’s YouTube for you. Estimates reckon that 41% of all US video streams will go through YouTube in 2009, thanks to over 375 million unique viewers worldwide.
However, revenue continues to elude YouTube. eMarketer tabulated what several sources in the market research community have estimated YouTube’s revenues (for 2008 or 2009, as noted):
- Jefferies & Co., 2009: $500 million
- Bear Stearns, 2008: $90 million
- Screen Digest, 2009: $120 million
- Forbes, 2009: $350 million
- Morgan Stanley, 2008: $75 million to $189 million
- Credit Suisse, 2009: $240 million
Not bad, you might think (even though the estimates vary drastically), but compare this with the costs associated with running the site – over $700 million in 2009, according to Credit Suisse analysts who project that while this cost includes bandwidth costs, content licensing agreements, hardware needs and other expenses, bandwidth and content licensing agreements, costs that cannot be easily allayed, will account for 87% of total expenses.
Is a shift away from amateurish user generated videos, and a move towards more professional work the answer?
Related posts:
- YouTube: 1 Billion Videos A Day … but Profitability?
- YouTube Tries The eCommerce Route For Monetization
- Now, Find IIT Lectures On YouTube Too
- Now, Get Full Length MGM Movies On YouTube
- Is YouTube Moving Towards Allowing Video Downloads?
Filed under: Business
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