YouTube does not earn money to Google (which bought YouTube)
Despite YouTube have 1 billion monthly users, these users are not able to earn money to the company.
It is a substantial balance between income and expenses.
And Google? Obviously it is not satisfied with their investment / acquisition.
According to a research carried out by the WSJ (Wall Street Journal – ed)
YouTube does not generate gains / profits for Google (which bought YouTube).
The YouTube’s revenues in 2014 amounted to 4 billion dollars.
These revenues must be added the costs and reach more or less in balance.
While in 2013, YouTube, generated revenues of 3 billion dollars.
The increase of 1 billion dollars, the revenues of 2014 was generated thanks
to greater collection for online advertising on YouTube.
The basic problem is that they weigh the costs of two items:
– Content (YouTube pays video editors, to have quality content on its network)
– The technology infrastructure (for 1 billion active users per month, the cost for hosting / server and engineers is very high)
But what is the real YouTube problem?
The answer is: the target
That is, the YouTube audience is made up of teens and tweens, “penniless”
without an income and purchasing power.
But these teens and tweens, “penniless” YouTube video of what you think you look?
Simply, they think of Youtube like it’s “their portable hard drive”:
an archive made of videos to watch and then move on to other sites that publish video.
bankruptcy business for YouTube?
Maybe yes, maybe not, for sure who manages the YouTube marketing, will have no easy days to live,
with Google that “press” to get profits from their investment / acquisition (YouTube – ed)
And what would then be the goal (or hope – ed) Google?
Compare YouTube to TV (television – ed), in Access, but the TV is immediate mode, while for YouTube, like any other web site, you need some time to load the platform (or through a PC (personal computer – editor’s note) or via a notebook (laptop – ed) or via a tablet, or via a mobile smartphone).
And at what targets would be addressed?
entertainment channels, mainly.
In 2012, YouTube (or better: Google is what you pay for YouTube), paid to the producers of video content, hundreds of millions of dollars to generate quality video content in an effort to create quasi-TV channels, without obtaining the desired results.
“Google (owner) YouTube, launched more than 100 thematic video channels”
Google paying for content?
The old Google motto was “content is king.” In fact it was because since 2012, Google pays to generate content.
But the contents are not artificially generated against Google’s guidelines?
So, with YouTube, Google goes against their own “rules and principles.”
But we know that the rules are always valid for others and never for ourselves, dear Google “takes all.”
YouTube-Google strategy to increase revenues?
To get a YouTube-quality programming, and have more users “in target”, in January 2015, Google signed an agreement with the US National Football League, to see
the Highligths (short video clips – ed) of the matches, on YouTube.
Whereas previously, in November 2014, YouTube announced a music subscription service, in “iTunes” from the name “Music Key” style, where there will be a database with available Millions of songs and videos, without the much-hated publicity.
The monthly music subscription cost should be of 7.99 Dollars / Euros (we await confirmation from Google & co )