Namita, Rajini YouTube Videos Costing Google Dearly

All those Namita, Rajinikanth, Sivaji Ganesan and Kamal Haasan videos we spend countless hours ogling at on YouTube are costing Google a lot of money.

A heck of a lot.

Remember, Google paid $1.65 billion for buying the user generated video sharing site YouTube a few years back.

Still, for all the popularity of YouTube Google is having a hard time monetizing the web property.

So far, Google has had only limited success in selling ads on YouTube.

A new study out today from Internet Evolution calculates that Google is losing $1.65 million a day on YouTube.

Citing the estimated $513 million to $663 million in annual YouTube losses divided by its 375 million unique visitors, this is what Internet Evolution Editor-in-Chief Terry Sweeney has to say:

The average visitor to YouTube costs Google between one and two dollars. Google is, in effect, paying YouTube consumers to visit the site, despite premium offers and other revenue-generating programs that can’t keep pace with the site’s expenses — content acquisition, bandwidth, and storage, to name a few.

Written by David Silversmith, the report is said to draw from a variety of sources including Bear Stearns, comScore, Credit Suisse and Google itself.

To read Internet Evolution’s full YouTube report, click here.

5 Responses to "Namita, Rajini YouTube Videos Costing Google Dearly"

  1. shadowfax_arbit   April 14, 2009 at 1:10 pm

    Pay some amount to Google… Come on, do this good atleast. Responds:

    Click on the Namita link (above)…the ‘high’ should keep you quiet for a while.

  2. shadowfax_arbit   April 14, 2009 at 1:27 pm


  3. joeantony   April 15, 2009 at 12:46 am

    same goes for twitter… absolutely no revenue just betting on unique visiter counts… Responds:

    BTW, is that your photo on the Twitter page?

  4. SRINIVAS   April 15, 2009 at 3:00 am

    Google’s Business model is such …..compared to Microsoft ….and there is no dearth of people who would feast on Freebies ……..but this model is not substainable in the long run …..Microsoft is here to stay …..

    Google is good at innovating and has gone beyond a search Engine …but that cannot go on forever …it will have to charge one day ….just like Microsoft … Responds:

    Google’s upcoming quarterly earnings report come out tomorrow. Should be interesting to watch if ad revenues are holding up in the face of the recession.

  5. babyface   April 15, 2009 at 9:46 am

    looks like most of your followers are chennai-ites. you stopped following the cisco chicken?

    joe looks like shuaib’s onnu vitta cousin.

    interestingly, asha has many black chick friends (and a fat hispanic dude too) from FL 🙂 sorry asha, couldn’t help noticing it. Responds:

    Yeah, got over Padma since we converted to Bielism.

    Wonder what ever happened to Shuaib.

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