Youtube is now going to be not only a site for amature videos but it will now offer tv shows and moives. Because google is doing this they may end up making some of the material veiwable only by a payment or a subscription.This agreement with the studios, which include Sony, Lions Gate, MGM and others, is significant because YouTube dominates online video. Nearly two-thirds of all video views come from Youtube. Google is said to lose around $470 million in 2009, as the costs of bandwidth and storage to stream more than 5 billion clips a month exceed the revenue YouTube earns from its advertisers. Since Youtube is mainly amature videos Google is going to try and lure some new advertisment by having more produced movies where the advertisers could put their spot as a preview. Google will now be in compeition with competitors such as already existing free movie sites that also provide advertisment. Without the charge of priemum content and with Youtubes increasing popularity Google will lose money because of the price of streaming and the lack of income. Google plans on finding the best way to increase revenue while keeping Youtube user friendly.
I think this is a very good idea by Google. Everyone goes on Youtube that I know of. Some people are on Youtube all day long. This is a very lucrative website. The possiblities are endless. Google just has to find a happy medium to please the viewers and increase revenue. I did not realize the cost for streaming. I never really thought about it and took it for granted and never thought about the cost. It was shocking to see how much money Google is expecting to lose this year. It goes to show how much money Google is making off Youtube beacuse I feel that a company should be bankrupt or atleast border-line bankrupt because of such a great loss in money. It makes sense as to why Google lost so much money. If it cost so much to stream the videos on the site and the site is not being able to have an income to support the costs then the site obviously loses money. Google is going to have to find a way to fix this becuase there are new users everyday which means they are losing money everyday.
Friday, April 17, 2009
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