Despite a billion viewers, YouTube has zero profit
According to a report from the Wall Street Journal, citing people familiar with the matter, the giant video service is barely breaking even despite its $4 billion in revenue. YouTube only accounted for 6% of Google’s ad sales, which is surprising considering how ubiquitous video content and YouTube links are.
But that may be the actual problem. According to research, most people access the website via shared links and embedded videos instead of visiting its homepage daily like they do for Facebook and Twitter.
In fact, most users are occasional viewers, and only 9% of viewers account for 85% of the views on the site, and most of those regular viewers are teens and “tweens”. What this adds up to is a not very successful bid for advertising dollars which are, seemingly, much better spent on traditional TV spots as well as YouTube’s competitors who offer stronger stats.
Google has been trying to turn this around though. The company has paid bonuses to creators in an effort to retain talent, while also investing hundreds of millions of dollars in original content.
It’s also hoping that new features such as the video autoplayer, as well as its new music streaming service will retain and engage a wider audience. However, this has had mixed results until now, with a number of creators decrying Google’s forceful approach to signing talent exclusively to its service.
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Source: http://www.neowin.net/news/despite-a-billion-viewers-youtube-has-zero-profit
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Comments
DeluxeHazardPosted:
This must suck for Google. They own one of the most popular entertainment websites on the entire internet and are barely making any profit.
1989Posted:
Whiz I honestly thought they had plenty of profit.
Sort of strange how they don't have profit, like what are they doing.. There YouTube!
I think nearly everyone expects them to be making tons all the time then you read this and apparently they make zero profit which is quite shocking!
Xeon_JynxPosted:
PisarczykowskiErza I think they are lying YT has to be making profit
They do, This article is so dumb i think, Youtube keeps 60% of the profit that a youtube makes.. so all the youtubers put together thats a lot of money.
Not everyone on youtube makes money though. And ones that get money directly from youtube have to be partnered WITH Youtube. If they're aren't partnered with Youtube they don't get any money from youtube. If they are partnered with another company such as Machinima, then Machinima would be paying that individual for doing youtube. Thus that individual is in fact getting money, for doing youtube. But, not from youtube as a company.
JesusOnAGoatPosted:
Erza I think they are lying YT has to be making profit
They do, This article is so dumb i think, Youtube keeps 60% of the profit that a youtube makes.. so all the youtubers put together thats a lot of money.
WhizPosted:
I honestly thought they had plenty of profit.
Sort of strange how they don't have profit, like what are they doing.. There YouTube!
Sort of strange how they don't have profit, like what are they doing.. There YouTube!
KatsumiChanPosted:
Reptrain Wow this would suck to have all them people that use YT and no Profit ):
>YouTube "didn't" make any profits, not everyone using it.
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