YouTube certainly has an interesting problem on their hands – they might have more than a billion viewers on the site, clearly making it one of the most popular websites in the world by far and large, but the even more amazing thing about it is, it continues to show that it is unable to churn a profit for Google – YouTube’s owners in essence.
The Wall Street Journal has reported that folks who are familiar with the matter claim that YouTube is finding it difficult and challenging to break even, and this is in spite of its revenue that rings up a tune of $4 billion. YouTube managed to account for just 6% of Google’s ad sales, which is a rather surprising development after taking into consideration just how ubiquitous video content from YouTube as well as its corresponding links are.
Perhaps the reason that majority of people access the website through shared links and embedded videos could be the problem, rather than having to drop by the YouTube page directly. If you were Google, how else do you think you would be able to monetize YouTube? It is a real tough nut to crack, this, and you can be sure that in due time, there will be some other organization or upstart that would like to challenge YouTube’s dominance – and make some money in the process, of course.
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