Why is YouTube has 1 billion viewers, but earnings are zero prime?

BySeungho Han

YouTube is one of the most famous websites in the world and has over 1 billion viewers. The Wall Street Journal reported that the profit of such YouTube is plus or minus "zero".

YouTube: 1 Billion Viewers, No Profit - WSJ
http://www.wsj.com/articles/viewers-dont-add-up-to-profit-for-youtube-1424897967

Despite a billion viewers, YouTube has zero profit
http://www.neowin.net/news/despite-a-billion-viewers-youtube-has-zero-profit

YouTube is growing into a huge video viewing service with more than 1 billion viewers in the world. Its sales reached 4 billion dollars (about 477 billion yen) annually, accounting for 6% of the advertisement sales of the entire Google, but if it looks at the overall balance, it is "zero deduction" Thing.

This is one of the factors that most YouTube audiences do not access YouTube directly, using SNS shares like Facebook and Twitter, and using embedded videos. According to a report that investigated YouTube, on YouTube, most users are "watching YouTube from time to time", and only 9% actually visit YouTube. The fact is that this handful of people are playing 85% of the whole videos.

The majority of this 9% of users are teenagers. As a result, advertisers are attracting the consequences of focusing on traditional TV spots rather than advertising on YouTube, so the rate of return is considered to be declining.

ByStill Burning

In addition, Twitter has been sending so many users to YouTubeAdd 30 seconds video tweet functionIn addition to that, Facebook also implements its own video playback function, and we are starting to provide services that do not rely on YouTube. Movie playback service which is said to be a competing horse on YouTube "Vessel"The competition of the online video industry has been intensifying intensifying, such as appearance.


To increase the revenue of YouTube, Google is investing hundreds of millions of dollars in its content, and it is aiming for recalling and increasing future regular viewers, such as securing talent by paying bonuses to creators is.