Wednesday, August 22, 2007

Will YouTube finally be a cash cow?

Silicon Alley Insider had a great article that ran some revenue projections on YouTube's new plan to sell video ads. This is a major (and much anticipated) step for the video juggernaut, and what's interesting is that in the author's conservative estimates, in 5 years they'd be pulling in about $200m in revs from ads alone....but in the "agressive" scenario where the CPM and percentage of videos with ads is scaled up, they make $13 billion. Pretty crazy. And remember when everyone thought the 1+billion dollar price tag seemed ridiculously high? Looks like a bargain now.

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