I don't understand Youtube. It runs contrary to everything I know about the Interent except for the dot-com "burn through VC money, wait for elves to bring gold" thing.
The bandwidth costs must be staggering and the the ad revenue almost nil. You don't even get an ad with it embedded like that.
"...it's estimated that YouTube is dropping about $1.5 million a month just to operate. That will double and triple as more people discover it. These losses can't go on forever."
Beats hell out of me...who's investing that much in it, and more to the point, how are they going to recoup their investments?
MENLO PARK, CA -- (MARKET WIRE) -- November 07, 2005 -- YouTube, a consumer media company for people to watch and share original videos through a Web experience, today announced it has completed a $3.5M round of private equity funding from Sequoia Capital. YouTube, founded by Internet commerce pioneers from PayPal, has developed a new service that allows people to easily upload, tag, and share personal video clips through www.YouTube.com and across the Internet on other sites, blogs and through e-mail. The service also allows users to create their own personal video network.
3 comments:
I don't understand Youtube. It runs contrary to everything I know about the Interent except for the dot-com "burn through VC money, wait for elves to bring gold" thing.
The bandwidth costs must be staggering and the the ad revenue almost nil. You don't even get an ad with it embedded like that.
How do they make a profit?
John C. Dvorak agrees with you.
http://www.pcmag.com/article2/0,1759,2010339,00.asp
"...it's estimated that YouTube is dropping about $1.5 million a month just to operate. That will double and triple as more people discover it. These losses can't go on forever."
Beats hell out of me...who's investing that much in it, and more to the point, how are they going to recoup their investments?
MENLO PARK, CA -- (MARKET WIRE) -- November 07, 2005 -- YouTube, a consumer media company for people to watch and share original videos through a Web experience, today announced it has completed a $3.5M round of private equity funding from Sequoia Capital. YouTube, founded by Internet commerce pioneers from PayPal, has developed a new service that allows people to easily upload, tag, and share personal video clips through www.YouTube.com and across the Internet on other sites, blogs and through e-mail. The service also allows users to create their own personal video network.
cut and pasted from an online market site.
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