Xavier Media®

According to Credit Suisse Youtube is expected to lose about 470 million dollars during 2009.

The income for Youtube will increase by 20% in 2009 to 240 million dollars thanks to more and more visitors, but the big problem is their costs. Their main cost is the bandwidth which is expected to cost about 1 million dollars per day (!!!) which is about half of their total costs. Spencer Wang mention the solution to charge their visitors for more content causing the profit per visitor to increase, but as an Internet user would you really want to pay for the content at Youtube? With their current content I wouldn't be interested in paying, but maybe if they add series like The Big
Bang Theory and How I Met Your Mom then maybe.

Wang is also mentioning standardized ad formats to increase the advertisers will to pay for ads at the site.

It looks like the financial crisis has reached the Internet community…. (see also Google closing services)

About the author
Andreas co-founded Xavier Media® in 1996 and has since been involved in all kinds of development, marketing and making money online.