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YouTube might finally be on track to post a profit for the first time ever, after years of losses since Google acquired the company in 2006, according to a research report issued by Barclay’s Capital analyst Doug Anmuth. (Hat tip to Peter Kafka at MediaMemo for […]

YouTube might finally be on track to post a profit for the first time ever, after years of losses since Google acquired the company in 2006, according to a research report issued by Barclay’s Capital analyst Doug Anmuth. (Hat tip to Peter Kafka at MediaMemo for pointing it out.)

In his report, Anmuth writes that he believes YouTube will begin contributing positively to Google’s EPS in 2010, projecting that the business unit will generate $700 million in revenue, representing 55 percent growth year-over-year. (Not mentioned is that this implies the business unit generated about $450 million in sales in 2009.) That comes from increased usage by viewers, as Anmuth notes that the total number of YouTube’s videos viewed grew 139 percent to 12.2 billion in November and unique visitors grew 32 percent year-over-year to 129 million.

Despite questions arising about YouTube’s profitability and the costs related to running the site last year — with one analyst estimating that the unit could lose as much as $470 million in 2009 (though others refuted that number) — Google has been relatively pleased with the trajectory that YouTube has been on, at least publicly.

Last summer on Google’s second quarter conference call, Google CFO Patrick Pichette said YouTube would be “very 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 earnings again next week, so we’ll see if the company has any update on YouTube profitability then.

  1. [...] Google: Barclays Ups Target To $675 – Barron’s Is YouTube Finally Ready to Turn a Profit This Year? – All Things Digital Economic Times – paidContent.org – NewTeeVee [...]

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  2. [...] link: Analyst: YouTube Could Turn the Profit in 2010 Share this on BlinklistShare this on del.icio.usDigg this!Share this on RedditBuzz up!Stumble upon [...]

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  3. [...] 2010, according to one analyst. Last week, Barclay’s Capital analyst Doug Anmuth suggested that YouTube could become profitable in 2010, with revenues growing more than 55 percent year-over-year to $700 [...]

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  4. [...] In a recent research note, Barclay’s Capital analyst Doug Anmuth suggested that YouTube would add to Google’s bottom line for the first time in 2010, with revenues growing more than 55 percent year-over-year to $700 [...]

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  5. [...] for some sites, but not many. YouTube, who stands to benefit the most from this basic model, still isn’t profitable! I’m hoping to write an article soon about what online video sites are doing to combat this [...]

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  6. [...] providing the best possible experience for all of you,” the founders say. Really? Some think YouTube may even turn a profit in 2010, NewTeeVee has [...]

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  7. [...] it’s still hard to make money in web video. Individual successes abound, but considering YouTube still is not profitable and hundreds of well-funded web series go unnoticed, predicting a hit online is much more difficult [...]

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  8. [...] the number of videos it can place ads against. That focus means that the online video site might finally become profitable this year, according to some analyst [...]

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  9. [...] are saving YouTube $1 a second in bandwidth costs.”) mean we should be more skeptical about analyst claims that the site will be profitable this [...]

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  10. [...] profitability bodes well for the online video industry as a whole. With YouTube also expected to turn a profit this year, 2010 could finally become the the year that online video stops being an experiment for publishers [...]

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