9 Comments

Summary:

When will YouTube be profitable? “In the not-too-distant future,” said Google CFO Patrick Pichette on today’s quarterly earnings call, same as he said last quarter. He did offer a “sound bite” to appease investors and industry watchers: “We’re monetizing more than a billion video views every […]

When will YouTube be profitable? “In the not-too-distant future,” said Google CFO Patrick Pichette on today’s quarterly earnings call, same as he said last quarter. He did offer a “sound bite” to appease investors and industry watchers: “We’re monetizing more than a billion video views every week on YouTube.” That’s out of “well over” a billion views that YouTube recently said it gets every day. So, let’s put on our fuzzy and unauthorized math thinking cap: There are seven days in a week. YouTube is monetizing in the neighborhood of 14 percent of its total views.

Google’s Nikesh Arora, president of global sales operations and business development, noted campaigns on YouTube’s home page have been undertaken with 90 percent of the top 50 advertisers. He said 90 percent of YouTube’s home-page inventory was sold out in the third quarter. Further, YouTube is beginning to release pre-roll inventory to advertisers — not the most-liked format for watchers or many in the industry, but a good way to make money. And the site is getting more premium content; it tied up a deal with Channel 4 this morning and straightened out its relationships with the music labels in recent weeks.

Google has come a long way from last year in its attitude towards YouTube, when CEO Eric Schmidt called YouTube monetization “the holy grail” and “our highest priority this year.”

“In general we’re really pleased about YouTube’s performance — it is going very well,” said Pichette. Arora added: “We’re pleased with our ability to monetize YouTube so far, and we like the trend.”

You’re subscribed! If you like, you can update your settings

  1. Google growth engine revving up again | Unfiltered Friday, October 16, 2009

    [...] ads on about 1 billion video views per week (out of about 7 billion videos viewed per week). NewTeeVee does the math: that means it is monetizing roughly 14 percent of its video inventory, showing significant room to [...]

  2. Contentinople – Ryan Lawler – News Bits: YouTube on Path to Profitability Friday, October 16, 2009

    [...] that the online video site now monetizes about a billion videos per week. That accounts for about 14 percent of all videos viewed on the site, according to [...]

  3. » Les vidéos sponsorisées de YoutubeMonBouquet | Le Blog des Fleurs et des Idées de Création d’Entprises Sunday, October 18, 2009

    [...] problème du break even de Youtube va vite être réglé, d’autant plus qu’il a été annoncé il y a quelque jours que Youtube affiche 1 milliard de vidéo par [...]

  4. YouTube Now Showing Pre-rolls on UGC Thursday, October 22, 2009

    [...] on the most recent Google earnings call, execs in effect previewed the Nigahiga pre-rolls, saying YouTube was beginning to release more [...]

  5. Mininova Gutted — and Another Chance to Monetize BitTorrent Blown « Digital « Amaze Saturday, November 28, 2009

    [...] that won’t bother about rights and royalties. But that doesn’t mean it can’t be done. YouTube has demonstrated that it’s possible to monetize content that’s been uploaded, and sometimes even mashed up, by [...]

  6. Analyst: YouTube Could Turn a Profit in 2010 Thursday, January 14, 2010

    [...] profitable” in the “not too distant future.” And on the company’s third-quarter call, Pichette noted that the company was “monetizing more than a billion video views every week on YouTube.” Google posts [...]

  7. Google: YouTube ‘Monetizing Well,’ Helping Partners Make Money Thursday, January 21, 2010

    [...] vice president of product management. The increase in monetization comes in part from drastically increasing the number of videos it monetizes, but it also comes from increased acceptance by [...]

  8. How Much Did It Cost to Start YouTube? Friday, March 19, 2010

    [...] then, the company has been increasingly focused on bringing more premium content to the site and increasing the number of videos it can place ads against. That focus means that the online video site might finally become profitable this year, according [...]

  9. YouTube Launches Branded Travel Channel Wednesday, September 8, 2010

    [...] site. YouTube is already serving some 2 billion ads per week against its videos, which is up from 1 billion video ads per week last October. Despite only monetizing about 14 percent of the videos that are available, the [...]

Comments have been disabled for this post