Google owned YouTube Losing Tens of Millions of Dollars Every Year
9th April 2009 by James Daniels
Since Google bought Youtube in November 2006 it has been a big hit and predictions show that 2009 could generate as much as $240 million in advertising revenue. This is an increase of 20% compared to 2008.
However….. Youtube’s yearly operational costs could exceed $700 million causing huge monetary loses to the parent company Google. An analyst has claimed that the Google have to spend $711 million on bandwidth, ad revenue sharing, sales and marketing, storage and licensing content.
The bandwidth alone accounts for $360 million. The loses are attributed to not selling advertisements on a massive 97% of the pages on Youtube. Google Adwords may dominate the PPC marketing world but Youtube are no where near.