YouTube - unprofitable business?
Since its launch in 2005, YouTube has gained immense popularity and has become one of the most popular repositories of content. Millions of people visit it daily. In a recent report, eMarketer showed that, although YouTube’s revenues may be significant, they still do not cover the costs of the enterprise.
According to Nielsen Online , YouTube was the fifth most popular Internet brand in the United States, with more than 83 million unique visitors in February. ( According to AlexaRank, YouTube is now ranked 4th - my italics.)
Credit Suisse estimates that in 2009, 41% of all American video streams will be streamed through YouTube, and the site will be visited by 375 million unique users worldwide. But if you think that the time spent and the widespread use of the service can be considered a big business for the video giant, then you are mistaken.
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Several marketing research companies have calculated YouTube earnings. So:
Despite the order of numbers and their huge variation, these revenues are insignificant compared with the cost of maintaining the site. According to Multichannel News , analysts at Credit Suisse predict that YouTube will spend more than $ 700 million on channel fees, license agreements, server maintenance and other expenses.
In fact, the payment for traffic and licensing agreements, and these are expenses that are not so easy to cut, will account for up to 87% of the total costs.
“In our opinion,” analysts say, “in order to move further, YouTube needs to increase the share of video that can make money (probably by increasing the number of deals with content providers), as well as increasing the number of advertisers by standardizing advertising formats and improve ad performance. ”
From the layman’s point of view, this means reducing the number of “sneezing pandas” against the background of more skillful business.
According to Nielsen Online , YouTube was the fifth most popular Internet brand in the United States, with more than 83 million unique visitors in February. ( According to AlexaRank, YouTube is now ranked 4th - my italics.)
Credit Suisse estimates that in 2009, 41% of all American video streams will be streamed through YouTube, and the site will be visited by 375 million unique users worldwide. But if you think that the time spent and the widespread use of the service can be considered a big business for the video giant, then you are mistaken.
')
Several marketing research companies have calculated YouTube earnings. So:
- Jefferies & Co. , 2009: $ 500 million
- Bear Stearns , 2008: $ 90 million
- Screen Digest , 2009: $ 120 million
- Forbes , 2009: $ 350 million
- Morgan Stanley , 2008: from $ 75 million to $ 189 million
- Credit Suisse, 2009: $ 240 million
Despite the order of numbers and their huge variation, these revenues are insignificant compared with the cost of maintaining the site. According to Multichannel News , analysts at Credit Suisse predict that YouTube will spend more than $ 700 million on channel fees, license agreements, server maintenance and other expenses.
In fact, the payment for traffic and licensing agreements, and these are expenses that are not so easy to cut, will account for up to 87% of the total costs.
“In our opinion,” analysts say, “in order to move further, YouTube needs to increase the share of video that can make money (probably by increasing the number of deals with content providers), as well as increasing the number of advertisers by standardizing advertising formats and improve ad performance. ”
From the layman’s point of view, this means reducing the number of “sneezing pandas” against the background of more skillful business.
Source: https://habr.com/ru/post/71774/
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