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Saturday, February 28, 2015

Is Youtube really making money?


I've been saying it for years, streaming business model does not work. For the simple reason that expenses grow at the same rate as the users growth. No limit, no cap. The more users you have, the more expensive it is to operate. Ask Spotify. Ask Youtube.

Youtube, with a billion users every month, more or less break even with their operation expenses:

http://www.techspot.com/news/59869-youtube-remains-unprofitable-despite-earning-4-billion-dollars.html

(Article published in The Wall Street Journal)

sv bell

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