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Google expects YouTube to be profitable soon

16 July 2009 19:46 by James "Dela" Delahunty | 2 comments

Google Inc. is becoming more confident that its YouTube video-sharing service acquired for $1.65 billion in 2006 will become profitable soon. Since acquiring the site, which is used to share and view videos for free, Google has lost money due to high maintenance costs as the number of users continues to rise. Analysts have been cautious about YouTube exactly because of these high costs.

"YouTube is now on a trajectory that we're very pleased with," Google Chief Executive Eric Schmidt said during an earnings call on Thursday. He revealed that Google is working with advertising agencies to help them to create ads suited for YouTube easily. At the Sun Valley technology and media conference last month, Schmidt also said that new advertising formats (such as pre-play ads) will draw in more revenue.

Additionally, in the past year, the number of video viewing monetized videos (videos supported by advertising) has increased three-fold. "We're now monetizing billions of views of partner videos every month," Google's head of product management and marketing, Jonathan Rosenberg said.

Permalink to this article | Topic: Online video

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windsong (Junior Member) 17 July 2009 2:17
Um..pre-play ads?? Bwahahahahha!! Stamp the word FAIL on the forehead of YouTube if this happens. [ + quote]
ZippyDSM (AfterDawn Addict) 17 July 2009 7:12
uhg... they are doing this like they do TV, it will fail. They need to target advertisement on whats in the video and first off that is to tie music videos and film/tv clips with their retail/legal owners to make purchases fast and simple. This can be used to aid deals with IP conglomerates and warm those who are anal(wanker music group) to the idea that they should not have absolute control over distribution, each view regardless of anything is a possible sale and they should cater to that as much as they can. Also force ads suck have 2 picture/banner ads on the youtube page, and a random outro you are not forced to watch, you try and stick commercials into youtube YOU WILL FAIL. also creating a premium account for 2$ a month or 25$ a year that allows you to link advertisement suggestions your self (fill out 5 key words to 3 product or so placement questionnaires so ads will key into them freqnalty) and if wish you can ban the use of video advertisement for your videos. Do something for the consumer that allows them to use their fair use rights tor ave about stuff and allow them some inroads into the advertisement process via assisting the bots to chose ads for it. They still insist on treating youtube,ect with an antiquated mindset, they need to drive ad assistance and legal purchasing "around" personal distribution. [ + quote]