Wednesday, February 3, 2010

Youtube Earns $10,709.16 From Its Rental Business Test

$10,709.16 over ten days may not seem like a big number for a Google product which Youtube earned from its first dip into the rental business, but it was just the first test. I would also point out that Google makes the vast majority of its money from ads, this rental income could be viewed as almost a bonus in that context. The real measure of economic success is if the program earns more then it costs. Google has played its Youtube operating expensive close to the vest, but my gut is that even that relatively small amount would be enough to cover the cost of the system. It will be easy to tell if I am wrong; if they discontinue the program. Though, I could counter that it may be the case that it was less profitable then what ever else they are doing. If anyone comes across some hard numbers, comment with them and I will update the post.

"The initial test, which ran for a brief 10 days, raked in $10,709.16 according to the New York Times' Bits Blog. It featured five independent films pulled from the ranks of Sundance Film Festival, which received 2,684 views at $3.99 a piece.

The 10-day test run was just the beginning, YouTube said on its blog, as the company will start to offer videos for rent "across different industries, including health and education ... in the weeks ahead."

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