Hello, my friends!
I’ve come across an article which I’d like to share with you.
How much would you pay a month to look at YouTube?
Apparently, billionaire investor Warren Buffett is willing to shell out five bucks for the pleasure of seeing dogs skateboard, kids making their own videos and the occasional piece of unlicensed material. At least that’s what he told Liberty Media Chairman Corp. John Malone at the Allen & Co. conference in Sun Valley, Idaho.
Malone shared that tidbit with reporters today after the morning sessions here. He was responding to one reporter’s comment that Facebook probably could get away with charging a small fee to its users. Malone, who sits on the board of cable programming giant Discovery Communications, thinks eventually people are going to have to adjust to coughing up some cash for online content.
“People will get addicted and be willing to pay for it,” Malone said.
Another article quotes Google Inc. Chief Executive Eric Schmidt
He said he hoped to get more professional content on YouTube, the Google-owned site that is dominated by amateur videos. Asked when YouTube, which Google acquired in 2006 for $1.65 billion, would make money, Schmidt said he wouldn’t make predictions. Page added that a timeline for its profitability was “just not that important.”
http://www.latimes.com/business/la-fi-ct-sunvalley10-2009jul10,0,4073664.story
Although Larry Page says he doesn’t care about Youtube profitability I think they will have to make a decision some day. According to some experts Youtube costs from $ 175 to $ 450 million a year, too much money to waste for fun.
Youtube hit 72.5 million US visitors in May 2009, if they have each paid $5 per month like Warren Buffett it would be
72.5 * $5 = $ 362.5 million
or
$ 4 350 000 000 a year
Hmm… Well enough to make it profitable.
I created a poll in our forum: How would you make money if you were Youtube? Please, follow the link and participate.
I’d also like you to comment this post with your vision on video monetization.
