Could YouTube turn a profit this year?
Barclays analyst Douglas Anmuth thinks it could. He reckons the video site’s revenues will rise 55% to $700 million this year, helping it to “start contributing positively” to Google’s bottom line.
Why? It’s all about the advertising – and specifically YouTube’s improvement in making money from its most popular clips.
“An improving advertising environment certainly helps, but with YouTube monetizing more than 1 billion video views every week, and with strong sell-out rates on its home-page from larger advertisers-we note 90% of the top 50 Ad Age have advertised on YouTube-we believe the site can profitably take share of the branded display & video market,” writes Anmuth in a research note.
YouTube’s profitability (or lack of) has been a live issue for the music industry, particularly when YouTube and Google have found themselves in conflict with bodies like PRS for Music and GEMA.
Tags: youtube
January 15th, 2010 at 4:42 pm
I def. think that 2010 will be the year youtube turns a profit. They have a ton of potential and I think they will be able to leverage it.