Quote:
Originally Posted by PowerCum
The "fact" that google makes no money from youtube is probably wrong at all.
I have already posted a couple of posts that explain how tube traffic volume fits in developing hosting business (use the search function).
In short, google gets a HUGE price drop on their datacenter and bandwidth costs. The price drop for all the other projects the company has, is enough to make it for the youtube site "loses".
I doubt that youtube is making it for money loss if you take into account google as a whole. The project itself may be a money sink, but having lots of other projects benefit from its resources makes the entire difference and probably ends being profitable.
You can read in another thread of mines about how my company saved lots of money by running a tube site that delivers porn but it's resources are used for completely different stuff meanwhile.
Synergy... it's all about it  |
that and youtube cross promotes videos for pay. Many of the recommended videoes pay a fee per viewing for the keywords that they tag their video.
none of which is counted when an outside firm is looking at the ad views.