[lbo-talk] speculation about the coming internet downturn

Doug Henwood dhenwood at panix.com
Tue Sep 18 06:55:49 PDT 2007


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.



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