Contentinople - Ryan Lawler - News Bits: YouTube on Path to Profitability

Written by Ryan Lawler

Friday, October 16. 2009 at 11:25 AM EDT 1 comment

Digg

Del.icio.us

Email This

1 saves

After increasing the amount of premium content it hosts and the number of video views it monetizes, YouTube Inc. may soon start making some money for parent company Google (Nasdaq: GOOG).

On the company's earnings call yesterday, Google execs said that the online video site now monetizes about a billion videos per week. That accounts for about 14 percent of all videos viewed on the site, according to NewTeeVee.

That is a dramatic increase in a short period of time. According to FierceOnlineVideo, Jonathan Rosenberg, senior vice president for product management said, "YouTube monetized views have more than tripled in the past year, and partner videos were being actively promoted on various sections of the site."

The increase in monetization has come in part from YouTube adding new premium content to the site from companies like Sony Pictures Digital Inc.'s Crackle, CBS Corp. (NYSE: CBS), Lions Gate Entertainment, Metro-Goldwyn-Mayer Inc., and Starz Entertainment LLC.

The site has also worked to improve the monetization of user-generated content by opening up its YouTube Partnership Program to so-called "one-hit wonders."

In other news:

Also on the earnings call, Google CEO Eric Schmidt said adoption of its Android mobile operating system "is about to explode," according to TechCrunch. Schmidt says there are now 12 Android phones being sold by 32 wireless carriers in 26 different countries.

While Google's Android continues to gain adoption, Apple Inc. (Nasdaq: AAPL) continues to add features to its iPhone device, including the ability to make purchases available within free iPhone apps, according to MacRumors. By doing so, app developers may now be able to distribute apps for free, increasing the probability that users will download them, while still monetizing those apps through features and add-ons.

Tags: Apple, Business, Google, iPhone, Mobile, Monetization, User-Generated Content, Video, YouTube

Digg

Del.icio.us

Email This

Comments

86% unprofitable
jasonendavo
Rank: Pasha
Friday October 23, 2009 12:27:22 PM

no ratings

Even after tripling its ad revenue, 86% of YouTube content is racking up bandwidth costs in the hundreds of millions with no advertising in site. YouTube knows it can only stay exclusively free for so long, hence the rumblings about YouTube subscriptions for premium content.

Start your Own Board

Messages List | Post a Message | Reply