Friday, July 24, 2009
YouTube could be in the black by 2010, according to Google Inc. which bought YouTube for $1.65 billion in 2006. The high cost of streaming millions of videos only a few of which are supported by advertising has kept YouTube in red ink, but Chief Executive Eric Schmidt claimed during an earnings call on Thursday that new formats, like pre-roll ads that appear before a video, are generating more and more revenue each month. Google's reported quarterly profit beat Wall Street expectations, but revenue growth was not as stellar as some had predicted, resulting in its shares dropping in price by nearly 3 percent.
Posted by R. Colin Johnson at 11:17 AM