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Thread: Maybe Google Isn't Losing Big Bucks on YouTube After All

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    Maybe Google Isn't Losing Big Bucks on YouTube After All

    Maybe Google Isn't Losing Big Bucks on YouTube After All

    http://www.businessweek.com/the_thre...s+%2B+analysis

    Ever since Credit Suisse came out with a report in early April estimating that Google’s YouTube will lose as much as $470 million this year, many people have been predicting the video sharing site is doomed and calling Google stupid for continuing to run it as is.

    Well, maybe not that stupid. A new report on how much YouTube costs to run concludes that Google is at most losing $174 million—no chicken feed but neither is it a figure that makes you doubt the sanity of Google CEO Eric Schmidt. The report, from RampRate, which advises companies on sourcing Internet bandwidth, content delivery, and other infotech services, makes the case that Google pays far less for bandwidth to receive and play all those videos than Credit Suisse assumed: only $49 million, not $360 million. RampRate also thinks Google’s hardware and data center costs are considerably less than Credit Suisse estimated. Here’s a comparison chart provided by RampRate:
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    They just whacked 30% of their workforce -- gotta think that's going to hurt future growth. Unless those folks were deadwood.
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    Quote Originally Posted by jimmymack-2000 View Post
    They just whacked 30% of their workforce -- gotta think that's going to hurt future growth. Unless those folks were deadwood.
    Wasn't that Myspace ?
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    Quote Originally Posted by Trev B. View Post
    Wasn't that Myspace ?
    Oops, you're right...damn
    "Tattooed men who are not behind bars are either latent criminals or degenerate aristocrats. If someone who is tattooed dies in freedom, then he does so a few years before he would have committed murder." -- Adolf Loos

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    i'm pissed because they took down the Trading Places party scene video

    "GET THE FUCK OUT!"
    As for the charges against me, I am unconcerned. I am beyond their timid lying morality, and so I am beyond caring.

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    pardon my ignorance, but who is Google paying when they pay for bandwidth?
    Last edited by Sal Paradise; 06-17-2009 at 06:11 PM.

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    Quote Originally Posted by Palatine William Wilson View Post
    i'm pissed because they took down the Trading Places party scene video

    "GET THE FUCK OUT!"
    That suckz.
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    Quote Originally Posted by Sal Paradise View Post
    pardon my ignorance, but who is Google paying when they pay for bandwidth?
    The Internet Man
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    Quote Originally Posted by DaveR View Post
    The Internet Man
    hee hee

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    Quote Originally Posted by Sal Paradise View Post
    thanks
    (\_/) "Recognizeth an attention
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    Quote Originally Posted by Sal Paradise View Post
    thanks
    Google owns/manages almost all of their own data centers, fiber, and under-ocean routes, and partner directly with several carriers

    ... so they don't pay but a Ham Samich w/ Chips
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    Quote Originally Posted by DaveR View Post
    Google owns/manages almost all of their own data centers, fiber, and under-ocean routes, and partner directly with several carriers

    ... so they don't pay but a Ham Samich w/ Chips
    You Tubes primary cost is paying for the bandwidth it takes up or something else?

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