The video content site continue to entertain millions of visitors from around the world – But Google are far less than pleased: The site simply isn’t making enough money.
YouTube only exists for 5 years, but it seems like it was part of our live since ever. It’s hard to recall what we did before YouTube , when we had the rush to hear some old song or entertain ourselves for few minutes.
Turned 5 years old
Not only , we the consumers, are having hard time to remember how was life before YouTube, the life of Cinema and Television corporations had also changed. Only that they look back in sorrow. Since YouTube’s breakthrough they had lost most control on the habits of the consumers.
Since the site was first open for the public it had few ups and downs, the most important one was it being bought by Google in 2007 in a deal worth 1.65 milliard dollars. Although YouTube has a financial and marketing support of Google, It been marked as one of the worlds’ most popular sites, and the fact that every minute visitor are uploading 20 hours of video, YouTube is still hardly pays for itself. With costs of over 365 million dollars a year for bandwidth and advertising revenues hardly reaching the 500 million dollar mark. Google has beating itself for over two years about how to produce more revenues that will maximize YouTube’s potential.
YouTube’s main problem is the difficulty to attach advertisements to 98% of videos it got. Google had made a major step in the last weeks when they added the automatic caption service which will aid in this subject.
The CEO Game.
