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2010 May Be the First Year YouTube Turns a Profit

Posted by Soulskill on from the keep-throwing-ads-in-there-we-love-it dept.

eldavojohn writes "Analysts are saying that this year will be the first year YouTube turns a profit. From the New York Times article: 'In the last year, the video site has become a significant contributor to the family business at a time when Google, which makes more than 90 percent of its revenue from text search ads, is seeking a second act. Though Google does not report YouTube's earnings, it has hinted that it is hovering near profitability. Analysts say YouTube will bring in around $450 million in revenue this year and earn a profit. Revenue at YouTube has more than doubled each year for the last three years, according to the company.' Of course a little over a year ago we were being told that YouTube was losing around $1.65 million each day. Regardless, when you pay $1.65 billion for a business, you probably don't expect it to take three to four years before you start making your money back."

4 of 89 comments (clear)

  1. Google looks to the future by Anonymous Coward · · Score: 5, Insightful

    Regardless, when you pay $1.65 billion for a business, you probably don't expect it to take three to four years before you start making your money back.

    This is why google is eating everybody's lunch. Thinking this far is a good thing when you are able to double revenues year over year. Not a bad long run strategy.

  2. Google's in it for the long haul.... by LostCluster · · Score: 5, Insightful

    In the .com error days, people valued money-losing Internet companies as if they would gain market share and be able to raise prices in the future. Most failed at doing that, and the bubble burst.

    But Google has this insanely profitable AdWords business, and therefore can fund a money-loser and work the ads in slowly... which is exactly what they did with YouTube. Look out phone companies, you're next.

  3. Re:Music by h4rr4r · · Score: 5, Insightful

    Amazon sells pretty much everything too, and 7digital, the company behind the ubuntu music store, is another great choice.

  4. The same idiocy by DerekLyons · · Score: 5, Insightful

    "Regardless, when you pay $1.65 billion for a business, you probably don't expect it to take three to four years before you start making your money back."
     
    Once again, it's pretty obvious that the summary writer (like most slashdotters) knows roughly fuck all about business. Taking three to four years to start earning your money back is neither new, nor unique to Google, nor even notable.