Is YouTube a Massive Money Loser?
International financial services company Credit Suisse has burst Google’s bubble: Its analysts report that YouTube could be on track to lose $470 million this year due to outrageously high operating costs and a poor business plan. I don't understand how this question can be asked. Is Youtube a money loser yes, more of a lose leader. An my hunch the Hulu is not roll in the cash flow, with reports surfacing of Hulu might be in a financial bind. Video streaming is an expensive undertaking, bandwidth might be cheap, but bandwidth cost is still greater than the revenues, if any, coming in. Most media producer are not thinking of bandwidth cost because they do not have to pay for it, Youtube(Google) and Hulu flip the bill. And with "HD" streaming becoming more the norm and soon to be standard, I don't see bandwidth bills decreasing anytime soon.
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