YouTube to lose $471 million in 2009, says Credit Suisse


Credit Suisse has published a report claiming that YouTube will generate around $240 million in advertising revenue this year – up 20% from last year – 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. Needless to say, the figures play into the ongoing rows in Europe over YouTube’s licensing payments to the music industry.

Music Ally

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