Quote:
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Youtube bandwidth cost = $1,000,000 per day
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That's probably about as accurate as we'll ever know and somewhat correct... BUT of course we might never know the real figures keeping in mind that the company wants to portray itself as profitable, even if it skews grey areas like this.
This is not calculating costs of managed hosting, infrastructure, equipment, PEOPLE, etc... need I go on...? Their expenses are phenomenal. YouTube is make very small profit compared to it's big revenue numbers. They have yet to figure out how to channel all that traffic into a higher revenue model.
Probably the biggest contributor to YouTube's struggles is that it's dominant age group demographics are ages from 17-20... not a very profitable group of people with a lot of time on their hands AND who eat bandwidth like it's free caviar.... sounds familiar? Like adult tubes perhaps... LOL.
SmokeyTheBear's info might be reflected on this not so old article back in Mar 08.
h t t p : / / techland.blogs.fortune.cnn.com/2008/03/25/youtube-looks-for-the-money-clip/
(sorry for not making it linkable... I'm not a big poster)
Peace,
Ben