YouTube on the Way to Profitability
According to this article, YouTube announced during their 3rd quarter conference call that they were on there way to profitability in the near future. Sure, anyone can say that they will eventually make some money, but Google execs had some pretty impressive numbers to back it up. Not too long ago, YouTube announced that it serves over 1 billion videos every day. Every day. YouTube also says it is monetizing on over a billion video views every week. That means they are making money on 1 in every 7 video views. YouTube gets a considerable amount of income from advertisements on its page, and it was stated that 90% of it’s homepage ad space had sold out for the quarter in the U.S., with the ad space for the rest of the world not too far behind it. YouTube has also made deals with 4 major record labels, which will also allow them to have yet another source of income. It is hard to believe that with all of this money coming in that they are not profitable, but they assure us it will happen soon.
Again, we have been talking about social media websites throughout the semester so far. As with the previous article, I find it very interesting to see that companies such as YouTube, Facebook, and Twitter are on the verge of becoming profitable by offering a free service. It’s hard for me to believe they can make money like that. Seeing all of the things these companies are doing to turn a profit is very interesting and intriguing.
