YouTube.com Economics
June 19, 2009
Google won’t say. So in an absence of data, pundits, mavens, and azure chip consultants guess-timate. Boy, didn’t that worked well for Long Term Capital Management and the MBAs who traded in NINJA paper.
Two views on the question, “What’s YouTube.com cost the Google?”
What I find interesting is that both views reference a study by Ramp Rate, a San Francisco based strategic research company.In “Guessing Game: How Much Money Is YoutTube Losing?” Google loses money. The 3News.co.nz story said:
Technology consultants at RampRate project YouTube’s operating losses this year at US$174.2 million – far below the US$470.6 million estimated by Credit Suisse analysts Spencer Wang and Kenneth Sena in an April research report that became a hot topic on Wall Street and the internet.
The Business Week write up about the Ramp Rate analysis carried the headline “Maybe Google Isn’t Losing Big Bucks on YouTube after All”.
My view is that analyses by banks and financial analysts are less interesting since the financial meltdown. If the lads and lassies were mostly correct, the present business environment would be different. Just my opinion.
Google isn’t too forthcoming about the cost of YouTube.com. What I recall is that Microsoft was going to tackle this sector. Microsoft pulled out. Yahoo continues to dabble. Start ups abound. Video is expensive and it takes deep pockets to play the game.
Beyond that, sheer speculation.
Stephen Arnold, June 19, 2009
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One Response to “YouTube.com Economics”
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hello sir,
i want knowlegde for admisson in economics master dgree