"User-generated content" is proving to be a financial albatross, says Farhad Manjoo, Slate's technology columnist.
YouTube, for example, sells ads on fewer than 10 percent of its videos, according to analysts at Credit Suisse. But the costs of storing and serving up 75 billion video clips a year costs Google $360 million a year, the analysts estimate. Add in all other expenses, and the cost of running YouTube for one year exceeds $700 million. But YouTube will make about $240 million in revenues for 2009.
Oddly enough, YouTube loses more money on its content than a daily newspaper.
http://slate.com/id/2216162
Thursday, April 16, 2009
YouTube As Monetizable as a Newspaper?
Gary Kim has been a digital infra analyst and journalist for more than 30 years, covering the business impact of technology, pre- and post-internet. He sees a similar evolution coming with AI. General-purpose technologies do not come along very often, but when they do, they change life, economies and industries.
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