Google:Youtube online video site’s profit in sight
Youtube finally back on track will be the first time, its parent company Google to achieve profitability. According to the company in charge of the Internet search group, said that to a large extent be attributed to popular online video site has been dismissive of the online advertising business.
They added, Youtube turn for the better in recent weeks become increasingly clear that, in spite of the overall Internet advertising market and continued weakness in the latest quarter, restrained the Google revenue.
Google CEO Eric – Schmidt to accept the 《Financial Times》 said: “We have been doing business analysis, some basic things have changed. Even with three months ago, it is brand new. ”
Youtube for Google in terms of the acquisition is an important turning point. 1.65 billion U.S. dollars two years ago, the acquisition is considered a risky bet, especially considering that the media company for Youtube appears to ignore the content of their Web site in its accusations.
As the assessment of the maintenance costs of a large number of streaming video of the difficulty, on Youtube on Google in the size of the annual estimated loss of views. One widely quoted from Credit Suisse pointed out that the assessment of the losses this year could reach 470 million U.S. dollars, and do good at the recent bandwidth from the cost analysis consulting firm to assess the RampRate only 174 million U.S. dollars.
The irony is that the transfer is from Youtube home page banner ads and video player patch before the mandatory advertising driven.
These forms of advertising the company has deliberately avoided to a large extent, and to give priority to more effective experimental and innovative low-interference.
As a by Chad – Hurley and Steve Chen created, and then transferred to Google’s private companies, Youtube for a long period of time are opposed to front-patch advertisements claiming that the audience hated them.
Google the latest experimental results show that the audience did not feel particularly unpleasant.
Mr. Schmidt said: “This is a pleasant surprise. Because of the emerging professional content online, it is more interested in first to enjoy a period of advertising.”
Although Schmidt did not respond to Youtube when earnings, Chief Financial Officer Patrick.Patrick Pichette has indicated that it would be in the near future. An inhibiting factor is the Youtube profitable Google and television broadcast agreements attempt to reach a relatively slow progress.
Youtube only has a cooperation agreement in the content of ads placed, and the number of these elements is limited. Therefore will be subject to corresponding restrictions.
For example, Disney entered into an agreement of its most popular programs from the ABC television network competitors on the Youtube site Hulu, Youtube and only agreed to provide a certain number of short-term programs.
Media research company Screen Digest analyst Arash. Amer, said: “With regard to premium content, Youtube also has yet to play to their strengths.”
“Copyright holders to decide who will get the content of broadcast rights. Youtube did not get Hulu or ABC is similar to the size of the premium content privileges. And that is the flow of advertising money.”
Nevertheless, according to a person familiar with the matter said, Youtube on protection by the co-operation is steadily increasing the number of video and video of more than 10% belong to this category.
Ultimately, Google senior product manager Jonathan – Rosenberg said, Youtube advertising a month to reach the billions of video, the number has increased to three times a year ago.
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