YouTube Growing Fast in Popularity, But Not Profit

by Larry Richman on April 22, 2009

According to Nielsen Online, YouTube is the 5th most popular Web brand in the USA.

top-brands-internet

YouTube is growing fast. They had over 83 million unique visitors in February. Credit Suisse estimates that 41% of all US video streams will go through YouTube in 2009 and the site will see 375 million unique viewers worldwide. That must mean big profits for YouTube, right?

Wrong. YouTube’s expenses for bandwidth, content licensing agreements, and hardware alone , and other expenses will reach over $600 million in 2009, while their income is estimated to be somewhere between $90 and $500 million.

That means that YouTube has to find a way to bring in more money, either with licensed content (like TV shows) or required ads.

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