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YouTube on track for loss
April 3, 2009
There was lots of talk about how to make money with online video, this week.
Online content, especially the ad-supported kind, got beat up by two reports this week. A Nielsen study said consumsers still watch more DVDs than online video. Meanwhile, consultant Strategic Analytics said paid-for online content will withstand the economic downturn better than ad-supported online video models.
According to VB sister publication Multichannel News, YouTube will be an example of that. Google's mega-popular ad-supported online video site is on track to lose $470 million, according to a report by Credit Suisse.
MCN says Credit Suisse reports that YouTube will have $270 million in revenue in 2009, but its expenses will top $711 million.
The good news is that the revenue forecast will put YouTube 20% over 2008. And Credit Suisse thinks YouTube will serve 75 billion video streams in 2009, a 38% growth.
That growth is looking in the right direction, if YouTube can rein in costs. But Credit Suisse says 51% of expenses is bandwith and 36% content licensing. What is YouTube all about? Content on bandwith. Gotta have those two things.
Time for a new model? We'll see if YouTube can make it work.
Posted by Samantha Clark on April 3, 2009 | Comments (0)
