Quote:
Originally Posted by jammies
Ok, let me rephrase that: I understand their business model, but it's not sustainable and I don't see how it ever could be. Regular Google ads are placed within pages unobtrusively, and use up tiny amounts of bandwidth, whereas Youtube videos use vastly more bandwidth and have annoying adverts everyone either skips past or installs a plugin to block. When you couple that with the anemic profits Google currently makes from doing the former, you can see why they are starting to think about a pay model for the latter, as poor an idea as that still is.
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“We had a very strong start to 2013, with $14.0 billion in revenue, up 31% year-on-year,” said Larry Page, CEO of Google.
I seriously have no idea what you mean when you say Google's business model is not sustainable.
In terms of bandwidth, YouTube is massive, however Google doesn't bear the full brunt of that - peering and the massive amount of dark fibre Google bought during the Web 1.0 bubble means they have massive reach.
I'm pretty sure they've thought this through.