Download the
Tom's Guide App from the AppsStore
News and trends on internet
/ mobile / "sound & picture" / IT
Yes No

Google CEO: YouTube is Still Losing Money

- By - Source : Tom's Guide US

Most of us have spent time on YouTube, browsing the cat videos and checking the latest funny clips uploaded by users around the world. However, for all the time we spend on the site, it seems YouTube is still not making any money for the search giant.

According to Dow Jones Newswire, Google CEO Eric Schmidt told reporters at the French university SciencesPo that YouTube is 'nearing profitability and its revenue is doing quite well.'

Though this is exciting news for Google, it's not the first time we've been told that YouTube was getting really close to becoming profitable. Media Memo's Peter Kafka writes that CFO Patrick Pichette said the same thing in July 2009. Not only that but Google's President of Global Sales, Nikesh Arora, said it a few months ago, in July of this year.

Google bought the hugely popular video site for $1.6 billion in November 2006, when the site had yet to reach its second birthday. It's not clear how much YouTube is costing the search giant each year it fails to turn a profit.

Source: Media Memo

Share:
37
Comments
X

Comments

eyefinity 09/11/2010 1:51 AM
Hide
-8+

How about this Google?

You continue to provide youtube, losing money, and we'll keep using your search, making money.

You want to advertise/screw us out of youtube so it's unwatchable, you can be sure your search won't be that far behind.

How about you give us something back, just for a change. That would make you the only one doing it. Worth it? You can decide.

cronik93 09/11/2010 1:54 AM
Hide
-20+

I bet if they stopped trying to make it look fancy and adding useless crap 110% of the time they would be doing a lot better.

mikem_90 09/11/2010 2:15 AM
Hide
-20+

I don't see anywhere that they want to cripple youtube to make it more profit centric. That doesn't seem to be their style.

Youtube is enormous, it gets them a LOT of notice, a lot of numbers. But if it becomes too much of a burdeon, they'll likely sell or slowly phase it out.

Just like any other business.

As nice as some folks like using Youtube, its not a charity. They sustain it via other divisions. They have no responsibility to keep losing money if they don't want to.

eyefinity :
How about this Google?You continue to provide youtube, losing money, and we'll keep using your search, making money.You want to advertise/screw us out of youtube so it's unwatchable, you can be sure your search won't be that far behind.How about you give us something back, just for a change. That would make you the only one doing it. Worth it? You can decide.



You are getting something. Youtube use for free. Free easy search. Google Mail for free. Google Earth for Free. Google maps. etc...

You technically don't have to spend a penny. Seems like you're already getting quite a good deal here.

Aionism 09/11/2010 2:24 AM
Hide
-20+

Fire the idiot(s) in charge of changing the layout and video player design every 2 weeks. Everyone will be happier and YouTube will cost a bit less to run.

nforce4max 09/11/2010 2:48 AM
Show
duckmanx88 09/11/2010 3:15 AM
Hide
-3+

the new layout has stopped me from going there all together. if you're looking for something specific its great. trying to find new music or a new funny video is too hard. the top 50 page is ruined and its filled with the same 5 people with 10 channels spamming videos everyday

eyefinity 09/11/2010 3:24 AM
Show
FloKid 09/11/2010 3:39 AM
Show
chrisjust98 09/11/2010 3:53 AM
Hide
-11+

eyefinity :
You really don't understand how any of this works do you?


lol? Do you?

Azimuth01 09/11/2010 4:06 AM
Hide
-1+

I suspect that you tube is currently being used as a tax write off. By showing a loss somewhere, they are actually making money hand over fist. How much money the site really generates is irrelevant. Assets and debt can be transfered to whatever subsidiary will benefit the parent company the most.

Anonymous 09/11/2010 6:00 AM
Hide
--3+

If Google ever got rid of Youtube I'd switch to Bing. As much as I hate to say this, it's true.

wribbs 09/11/2010 8:34 AM
Hide
-20+

Well maybe I'm being a tool but I'd just like to say thank you to Google for everything they do for me and everyone else. Granted Youtube and many other Google services are not perfect but I certainly appreciate them. I know I sure wouldn't be paying to host thousands of videos of idiots who would be outraged if they had to pay anything at all to host this crap themselves.

Here's to you Google, may you outlast your competitors and not sway to far into the dark side of capitalism.

Anonymous 09/11/2010 10:05 AM
Show
nebun 09/11/2010 10:59 AM
Hide
--3+

they need to shut it down. most people just watch other peoples movies and never click on the adds. oh well!!!

JOSHSKORN 09/11/2010 11:15 AM
Hide
-5+

YouTube? Nah. I frequent other sites ending in the word "tube". :)

JeanLuc 09/11/2010 11:43 AM
Hide
--3+

Youtube you introduce premium content like exclusive boxing matches, films premiers, sporting events etc for which people would have to pay to see or take up a subscription.

abbadon_35 09/11/2010 12:43 PM
Hide
-1+

nice accounting, Anderson & BearSterns I wonder?

eyefinity 09/11/2010 4:13 PM
Hide
-0+

chrisjust98 :
lol? Do you?



Yes I really do. How do you think Google makes money if they are giving all this away "free"? The tooth fairy?

Silmarunya 09/11/2010 4:53 PM
Hide
-7+

nforce4max :
I agree with ridding of the fail employees who only continue to screw youtube up more than it is. I spent two years of my life crafting and building my channel only to have it killed by false copyright claims. Their appeals process sucks @$$ and all my claims were denied -_- so much for fair use. I miss the old youtube that was a true form of free human expression that any one can post great songs and vids but nope we all must be slaves. I am tired of my favorite music videos being either blocked or pulled. -_-



Posting copyrighted material is illegal, so why blame youtube for removing it? Anyone can post material they make themselves, but they can't post someone else's material. What's unfair about that?

Pyroflea 09/11/2010 6:12 PM
Hide
-0+

Maybe they should stop having their webdev team completely redesign the website every other month, and just work on performance-related issues instead. I bet that'd save them a pretty penny (and piss me off less).

failboat 09/11/2010 9:43 PM
Hide
-1+

lol@allthefreeloaders

BulkZerker 09/12/2010 12:41 PM
Hide
-0+

1. Stop all the redesigns.

2. Limit the max resolution of vids to 720p.

3. Remove duplicate vids and post redirect links in their place.

4. ?????

5. Proffit!

lradunovic77 09/12/2010 1:44 AM
Show
demonhorde665 09/12/2010 2:42 AM
Show
yay 09/12/2010 8:10 AM
Hide
-0+

Some of the posters here need to realise they already get almost every google service FREE OF CHARGE. Grow up.

Cyex 09/12/2010 8:12 AM
Hide
-6+

eyefinity :
How do you think Google makes money if they are giving all this away "free"?


Advertisers. Are you an advertiser or a freeloader?

Personally I'm a freeloader... thanks Google!

eklipz330 09/12/2010 8:37 AM
Hide
-0+

youtube is here to stay.

i can actually say something now. i can say that when i was a baby, there was no google. hard to say that about anything honestly

leonlee 09/12/2010 8:04 PM
Hide
-0+

Youtube isn't alone on this one. Justin.tv is also losing money after all these years.

Anonymous 09/13/2010 12:43 PM
Hide
--3+

When is the government bailout?
I wonder how many watts YouTube runs on?
btw there is a new faster layout for youtube and youtube playlist in endlessjukebox.com/261

cronik93 09/13/2010 2:35 PM
Hide
-2+

hyjyt :
Dear friends, please temporarily stop your footstepsTo our website Walk around A look atMaybe you’ll find happiness in your sight shopping heaven and earthYou’ll find our price is more suitable for you.Welcome to our website http://www.clotheshops.us Next we come to talk about a topic:Why are now prices are very expensive%uFF1Fyes Many people now have to earn more moneyto Pushing up pricesBut they didn’t find customers buy after won’t come backBut friends %uFF0CDo you ever foundOur website is more cost-effective price than others



How about you go die?

I'm tired of seeing this god damn spam.

Anonymous 09/13/2010 3:26 PM
Hide
-0+

cronik93 :
How about you go die?I'm tired of seeing this god damn spam.



I just want to meet and punch in the face the guy who translated it into this mess of Engrish. If you're going to spam, at least have the decency to translate it properly.