05 03 13

Can YouTube’s ad revenues support premium video content?

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As the world’s largest streaming music service, YouTube’s ability to make money from ads is being scrutinised increasingly intensely by music rightsholders.

Watch for the ripples from All Things Digital’s report this week, then, for it claims that YouTube’s ad revenues aren’t keeping pace with the explosion of viewing on its platform.

The piece claims that YouTube ended up with “a glut of inventory” in 2012, which put more pressure on its advertising rates. It also notes that a number of YouTube-focused video production firms are turning to sponsorship, iTunes soundtrack sales and selling ads on their own sites to make up for the shortfall.

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Stuart Dredge
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