All entries for Saturday 17 November 2007

November 17, 2007

YouTube fails to create cash

YouTube Fails to Create Cash:


While doing the annual round of recruiting next year's students to the wonders of A level Media Studies  a bright eyed school student asked the obvious question when I was talking about the rapidly changing world of the internet and the $1.65 Billion acquisition of YouTube by Google - one of the World's greatest money spinners:

"But how do they make money?"

I replied that whilst Google was doing extremely well out of advertising thank you,  as far as I knew they had not found a money making model for YouTube yet. This is rather confirmed by the folowing blog posted on the FT website the following day (talk about serendipity):

“The lack of monetisation on YouTube today is astounding,” said Dennis Miller of venture capital firm Spark Capital.

“You’ve got the single best monetising machine that can’t figure out how to monetise all those eyeballs. There’s some paltry number out there for the millions of streams they serve.”

There is a but though with this fact to remember for the Audiences part of the Exam:

But while there may be dissent among the videorati of Silicon Valley, YouTube’s status in the public’s eyes is still considerable. According to Nielsen Online, YouTube was the seventh most popular brand online in the US in October with a unique audience of 57m users. (My emphasis and it is Oct 2007)

Well YouTube are promising to work how to make money out this phenomenal number of users who apparently spend 15-20 minutes on the site.

Well, perhaps it would be nicer if Google kept this as a sort of Public Service Broadcasting (Webcasting) space in cyberspace especially as Google is getting so powerful now that people will start to dislike it rather as they do Microsoft! 


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