YouTube Profits Closer Than Ever

Multiple Google execs chime in

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The days of YouTube representing a financial black hole may soon come to an end.  Several of Google’s execs have indicated that the video-sharing site is on track to start making more money than its operations consume.

Patrick PichetteGoogle’s CFO, Patrick Pichette, issued the most precise forward-looking statement during the company’s earnings call late yesterday.  "We’re really pleased both in terms of its revenue growth, which is really material to YouTube and, in the not-long, too-long-distant future, we actually see a very profitable and good business for us," he said.

CEO Eric Schmidt also confirmed (speaking a little more vaguely), "YouTube is now on a trajectory that we’re very pleased with."

And as for what the current state of things looks like, Jonathan Rosenberg, Google’s senior vice president of product management, specified, "We’re now monetizing billions of views of partner videos every month."

This paints a pretty rosy picture, all in all.  YouTube, while one of Google’s most popular sites, has also been something of a disappointment in that Google hasn’t gotten a significant return on its initial $1.65 billion investment.  Now it looks like Google will be able to correct the problem.

YouTube Profits Closer Than Ever
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  • http://www.technogati.com Technogati

    Yes.You are right that YouTube will earn more than Google expects.
    Even Google has some excited earning streams like Adsense,Adwords etc.Google wave can also work for Google in coming future.

  • http://www.fx-bar.com forex

    I really can’t understand how a site, that is one of the most popular in the world, only becomes profitable after so many years around..

    I can just guess the headline for 07/17/2025: “Twitter Profits Closer Than Ever”:-)

  • http://www.pioutsource.com PI Outsource

    Bandwidth costs money! Lots of it!

  • http://www.apsense.com/article/130304.html Brand New Video Search Engine Technology

    The number of online video viewings is growing day by day thus i can imagine that YouTube will be more profitable in the near future.

  • http://www.zygella.com Joe

    This proofs how difficult it can be to make money online let alone get your website to the public attenation.

  • http://heinzrainer.wordpress.com Guest

    Wondering where one takes this figure from. In your wildest dreams, Google sets up a hundred servers – at a cost of 10000 $ each, amounting to 1 Million Dollars, employs an extra 10-15 staff at 1.5 Mio $ and uses some of its premises to set up office.
    Running expenses have now gone into Billions ?
    Everyone talks Billions these days, but not everyone takes all what is said.

    • http://www.zingwiz.com Tristan

      Google bought YouTube for 1.65 Billion dollars in 2006. That’s where the investment number comes from. I guess the article assumes the operating costs haven’t been significant enough to change that figure at this time.

  • http://jackmarrows.com Jack Marrows

    Lets not discount the amount of intellectual property they are obtaining from their users. The data YouTube is collecting is invaluable and worth every cent regardless of whether it turns a profit year to year. Google is built on data.

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