Most popular video sharing site Youtube, now under Google, costs $700 Million annually and generates only $240 Million. That’s half a billion loss per year.
Shocking but true. According to a Credit Suisse report, most popular Video sharing site and one of the top 10 sites among All Categories, Youtube costs Google almost half a billion every year.
Social media site grow like magnet with inorganic rates. However the most important problem is that none of the major Social Networking, Bookmarking and Content Sharing sites have been able to break even. Almost all are experiencing losses, be it Facebook, MySpace, Digg. Twitter etc. you name it. All are fancying their chances of getting a green bottom line by converting their traffic into revenue generation model.
Even Google has been unsuccessful to break even with Youtube. It is experiencing an estimated loss of $460 million most of which are accounted for under Content Overhead and Bandwidth
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