Re: speculation about the coming internet downturn
Henry Blodget sorta answers my question about YouTube’s
profitability. Some possibility some years from now.
http://www.alleyinsider.com/2007/08/youtubes-video-.html
In short, YouTube’s revenue won’t likely be material to Google for at
least a year or two and possibly more. The impact on the bottom
line, moreover, will probably be even less pronounced: Serving a
video ad, even for Google, is far more expensive than serving a text
link. At a $20 CPM, the gross margin on such ads will likely be well
below Google’s current margins.