Quote:
Originally Posted by potter
1. Advertising like that isn't about making people go buy your product right then and there. Think Budweiser & Coke. Neither put out a commercial to see profits rise instantly. They both OWN the market. Their commercials don't do shit other than keep their image in their consumers mind.
2. Who knows how much bandwidth Google owns. You can't look at it like we look at bandwidth. Google doesn't buy a server and pay overages when they exceed their limit. Google is bigger than most bandwidth/service providers. You think they don't own enough bandwidth to allow youtube to grow ten times it's size and still have left over bandwidth usage?
|
Those are a couple of very good points. I guess then the questions are: What will come of the Viacom case? And if they win the case how long will they be willing wait to make a profit? They make enough money in their other things that they can carry this site for a long time if they want, but if profits in other areas start to wane they might start to see Youtube as an albatross around their neck.
Then again if they lose the Viacom case it is a whole new situation and making a profit will be the furthest thing from their mind, just keeping the site running will be difficult.