YouTube: few profits but billions of users

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It seems paradoxical but billions of contacts do not correspond to phantasmagorical profits. It is the case of YouTube that although it can count on billions of users in the world does not generate big earnings for Google.

YouTube is an online platform with extraordinary success. The numbers are all on his side: more than one billion active users per month, hundreds of hours of video uploaded per minute, two billion views for a single video (we are talking about Psy with Gangnam Style).

How much do you earn with Youtube?

Last year, however, the Wall Street Journal had analyzed the question by pointing out that despite the revenues amounted to four billion dollars a year, removed the costs for infrastructure and artists, remained very little in the coffers of Google (to make a Facebook comparison on 12 billion of revenues produces 3 billion of profits). The reasons are to be found in the display mode that generally occurs through links on other portals and not by browsing in the same YouTube: therefore see advertisements on the homepage on the site is not very profitable.

It is now clear that even startups linked to YouTube have difficulty in monetizing short and cheap digital videos and attracting significant investments. Despite this, there is a steady growth in budgets dedicated to mobile videos, which in the US have increased by 18% over the last two years, and the positions taken by half of advertisers who are shifting their investments from TV to digital. eMarketer estimates that by doing so, by 2017 a $ 9 billion global business should be achieved.

The digital market is trying in every way to study new systems of capitalization, integrating first of all different channels, Facebook, Twitter, Snapchat. The great protagonists of the media, aware of the potential, have given the start for a few years to a risiko of acquisitions.

To give some examples, DreamWorks Animation bought in 2013 the community of AwesomenessTV Youtube channels for a sum equal to 33 million dollars; In the same year, Rtl Group acquired Broadband TV for 36 million dollars (51%) and the following year StyleHaul for 107 million dollars (93.6% shares).

Disney is finally willing to pay 500 million dollars, plus another 450 million in prizes, to acquire Maker Studios (leader with 10 billion monthly views, 650 million subscriptions and 55 thousand artists). The future therefore seems to be full of good expectations.

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