YouTube will generate around $240 million in advertising revenue in 2009, up 20% from 2008, but that cost of bandwidth, content licensing, ad-revenue shares, hardware storage, sales, marketing and other expenses will total around $711 million, leaving Google’s video-sharing site $471 million in the red. Bandwidth alone accounts for around 51% of YouTube’s costs, claims the analyst, with content licensing accounting for 36% – or $256 million. The report predicts that YouTube will serve 75 billion video streams in 2009, up 38% year-on-year.
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