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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VPNPosted:
Of course, this would come to a shock to a lot of people. I think YouTube needs to cut down the CPM. They're paying people that just answer questions and other dehumanizing things. Its disgusting.
GaryPosted:
200 Thats BS this company is getting profit.
YouTube generates a gigantic amount of traffic and their servers cost a lot to run. They also have employees and content creators to pay, so i wouldn't be surprised if they don't actually make any profit.
EarnPosted:
What a load of bollocks of course they will be making profit I don't believe this a single bit!
SkittlePosted:
This really surprised me! I though that YouTube would be swimming around in billions!
S7Posted:
Tet "0 profit"
The site + staff + Hardware does not equal 4B$ a year to run.
If it did then YouTube would've shut down before Google took it over.
I agree 110%, no way it would have been up as long as it was
KatsumiChanPosted:
"0 profit"
The site + staff + Hardware does not equal 4B$ a year to run.
If it did then YouTube would've shut down before Google took it over.
The site + staff + Hardware does not equal 4B$ a year to run.
If it did then YouTube would've shut down before Google took it over.
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