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Did Google Made Back His Billion ? - Youtube ?

Discussion in 'BlackHat Lounge' started by host32, Jan 14, 2010.

  1. host32

    host32 Regular Member

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    Hey mates

    what do you think ?
    did Google's investment in youtube was worth the price ?
    did they made their billion back or maybe not yet ?
     
  2. toxtom

    toxtom BANNED BANNED

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    - Youtube is working with losses if you didn't knew ;)
     
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  3. mariobaez

    mariobaez Newbie

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    Google makes about $20-25 billion per year in revenue. They bought Youtube for a billion, but with video storage/streaming services as big as that, they are probably were losing 600-800+ million every year.

    The last year; not quite sure. They have added ads, made partnerships with many companies, and their multimedia fingerprinting system lowers multiple video uploads. But at the same time, people are using Youtube now more than ever. In 2008, there were around 10 videos that had 10 million views. Now, 10 million views could be attained with an Andy Samberg smile or Gucci Mane wearing yellow.

    Think about the Vevo deal. They gave up storage, and they gave the music companies their "own website" ( wow, 4-letters and good css ), but they gain a lot: They probably don't have to pay storage costs, and they still get to utilize some revenue share without babysitting all the pain and hassle of music copyright, streaming activities etc. Essentially a real-life version of the South Park episode when Cartman gets his own theme park.

    They will probably start breaking up/redirecting traffic to people who want to make more money with their own revenue activities in exchange for taking the brunt of the storage/web activities and keeping some revenue sharing around so they can get some.

    Looking at this future; no, Google will just fine. They are about three years ahead of the game in public; who knows what other ideas they can run with. Goddamnit, they made their own phone! Maybe a reaction to the mobile movement, but did any of us in 2008 think that their OS experiments was going to culminate into mobile hardware market?
     
  4. Crooker

    Crooker Newbie

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    That story isn't true.
    It was rumored that googles bandwith bill from youtube was bigger then it's revenue.
    Google bought something and then it was all fine..

    Kind of vague i know, i can't remember the whole story anymore but i thought it was posted here.
    Not much help haha.

    But there was something they acquired to keep those costs down..
     
  5. mariobaez

    mariobaez Newbie

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    About Youtube, Google will never probably make up the costs. But the portal is powerful enough to bring in enough content and companies and get them to use other services.
     
  6. mariobaez

    mariobaez Newbie

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    Yes, for Youtube, their costs are up. But they don't make the big bucks off Yotube. Thats like saying Disney lost money from BET. They still have money from ABC, ESPN, MTV, etc. They also cross-promote through their different products, which in the end is more valuable than not having the structure.
     
  7. zenerchi

    zenerchi Regular Member

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    the internet is still very very young and so is youtube. in time it will be insanely profitable.

    When the kids of today who are 10-14 start getting into these google positions the rigth business model will develop.
     
  8. reinie

    reinie Elite Member

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    Im sure they didn't just wake up one morning and decided to buy YouTube.
    Those guys at google are years ahead of the game and who knows what their strategy is.
    making their money back yet? maybe not, but im sure they will do so tenfold pretty quickly
     
  9. SirPC

    SirPC Newbie

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    Agreed
     
  10. rocsk79

    rocsk79 BANNED BANNED

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    its the same thing with microsoft and the xbox.

    When xbox first came out they knew they would lose money trying to compete with sony in the beginning but they planned a LONG TERM investment and they could afford to do so.
     
  11. khanhdum

    khanhdum Regular Member Premium Member

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    exactly it's a long term investment, not a hit and run type of deal. google will make youtube profitable
     
  12. cpa007

    cpa007 Newbie

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    http://www.webpronews.com/topnews/2010/01/14/barclays-analyst-predicts-youtube-profitability