November 9, 2011

YouTube's Annual Revenue Is More Than $ 1.6 Billion

By Jean Williams


It is reported that despite the revenue Google's YouTube in this year's may reach $ 1.6 billion, but Google has so far refused to release details of the company's revenue figures.

If this data is true, then since Google acquired YouTube five years ago, the revenue it has brought to Google is almost equal to its purchase price. More importantly, the data also show that at current YouTube has accounted for 80% of the global Internet video market. This is a stunning figure, because the whole market's revenue is about $ 2.0 billion.

But it was also noted that the data is biased, because the U.S. online video site Hulu has said its revenues in 2011 have exceeded $ 500 million, most of which is from advertising. If these two numbers are accurate, then all the video sites in the rest of the world should not have any additional revenues. Therefore, this situation is clearly unreasonable.

Although these data are not worthy of scrutiny, YouTube has undoubtedly become a major service sector of Google and it has brought considerable capital income for Google. May be it have begun to make profit.

But analysts (http://www.customcutstainlesssteel.com/) also pointed out that Google is working with Hollywood recently to co-develop a professional channel video content. It would like to please advertisers though this, so that the latter pay more in advertising. The question is, if YouTube has been able to get 1.6 billion in revenue through non-paid contento, why should it cooperate with Hollywood? One possible answer is that this channel strategy may be the development focus that YouTube currently concerns, but this does not mean that YouTube has abandoned the traditional development route.

Since YouTube only invested $ 100 million in the creation of in the professional content channel, this cost is only a drop in the bucket for Google. In fact, in the first nine months, Google has spent $ 173 million for purchasing content mainly relating to the content that YouTube plays. And the channel strategy also highlights Google's strategic objectives to defeat TVB and bring down the cable. The outstanding performance of YouTube has made Google to work harder to promote the implementation of this strategy.




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