Google losing big money with YouTube

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A financial analyst has cast a new light on Google’s ongoing battle with the music business. According to Credit Suisse’s Spencer Wang, YouTube will lose parent Google $470m this year, because it can’t generate worthwhile income from advertising.

This is interesting, because Google is no tuppeny startup. It’s the world’s biggest, most innovative and most successful online advertising powerhouse. Which means Google’s failure to “monetize” YouTube is down to one of two things. Either there’s potential ad revenue for online video, and Google can’t capture it yet…or there isn’t, and the economics of YouTube means it will always be a liability on the wrong half of the balance sheet.

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Filed under Brands, New Media

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