Digital Marketing and Social Media Strategy

Will YouTube Die?

R.I.P. YouTube could very well be the future, final blog post title on the popular video sharing site’s official blog (did you know they have a blog?). I recommend you read

  • Google will lose $470 million on the video-sharing site this year alone. To put it another way, the Boston Globe, which is on track to lose $85 million in 2009, is five times more profitable—or, rather, less unprofitable—than YouTube.
  • not even Google can long sustain a company that’s losing close to half a billion dollars a year.
  • Advertisers don’t like paying very much to support homemade photos and videos. As a result, the economics of user-generated sites are even more crushing than those of the newspaper business.
  • YouTube sells ads on fewer than 10 percent of its videos.
  • they pay for a broadband connection capable of sending data at the equivalent of 30 million megabits-per-second—about 6 million times as fast as your home Internet connection. All this bandwidth costs Google $360 million a year, the analysts estimate.
  • YouTube spends about $250 million a year to acquire licenses to broadcast professionally produced videos.
  • the cost of running YouTube for one year exceeds $700 million.
  • the company makes only a fraction of that back in advertising—about $240 million in revenues for 2009.
  • Digital Ethnography class at the


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