YouTube to lose over 300m this year, predicts analyst

Google-owned YouTube is set to lose around $470m (319m) this year, according to CreditSuisse analyst Spencer Wang.

Google-owned YouTube is set to lose around $470m (£319m) this year, according to CreditSuisse analyst Spencer Wang.

Wang predicted the video sharing site will generate $240m (£163m) in revenue for 2009, up 20% year on year. However, its operation costs will run to around $700m (£474m).

The report said around half of the costs come from bandwidth costs, which Wang set at $30m (£20m) per month or $360m (£244m) per year.

Google bought YouTube for $1.76bn (£1.19bn) in November 2006.

Wang pointed at ways YouTube could increase revenues.

“The issue for YouTube going forward is to increase the percentage of its videos that can be monetised (likely through more deals with content companies) and to drive more advertiser demand through standardisation of ad formats and improved ad effectiveness.”

The report said YouTube’s revenues totalled around $150-200m (£102-136m) in 2008.

This story first appeared on newmediaage.co.uk

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