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paidContent - YouTube Engages in Some Myth-Spinning: We're Doing Great; Testing 3-D Videos

This story was written by Rafat Ali.
YouTube is finally getting some love from within the company, which means it is talking publicly about its revenues seriously for the first time, even if it’s not actually saying much. After Google (NSDQ: GOOG) mentioned in its Q209 call last week that the video behemoth was on a trajectory to become a very profitable business for us in the not too distant future, we get some more grandstanding from the company: YouTube’s PR team has come out with a post this morning “officially busting” some of the “myths” surrounding its business. Among them: that YouTube is home to short, grainy user-gen vids; that it is under-monetized; and that advertisers shun the company—all resulting in money-bleed for the company. And its response, in short: It ain’t true, fellas. That’s pretty much it. The only interesting part comes here: “The truth is that all our infrastructure is built from scratch, which means models that use standard industry pricing are too high when it comes to bandwidth and similar costs. We are at a point where growth is definitely good for our bottom line, not bad.” Which gives credit to this analysis by RampRate last month, which said the costs of video delivery for YouTube are a lot lower than what analysts have previously estimated.

Meanwhile, YouTube is also testing adding 3D videos to the site, which may bring those horrendous glasses back. SEORoundtable picks up on some discussion on company forums about it, including a live example here (will only work if you have 3D glasses).


By Rafat Ali
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