YouTube’s Big Challenge: Making a Profit
Any major changes could possibly affect the popularity of the site. We’ll see how it turns out!
YouTube’s big challenge: Making a profit
Google Inc. has tried for three years to turn YouTube into an advertising platform, and it’s now aggressively pushing new ad formats and sealing deals with media companies.
These deals are part of YouTube’s new revenue-generating strategy – a monumental effort the company has tapped Google veteran Salar Kamangar to oversee. More high-profile shows help it attract higher ad rates.
While YouTube continues to lose money, Google Chief Financial Officer Patrick Pichette told analysts he was “really pleased” with YouTube’s revenue growth and said it will be profitable “in the not long, too long distant future.” Some analysts estimate YouTube’s revenue will roughly double to about $500 million in 2009, because of its advertising pushes.
“We can’t be successful unless our partners are successful and making money,” Kamangar said.
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