Analyst believe YouTube is not losing much money for Google

Analyst believe YouTube is not losing much money for Google

Most analysts in the recent times have said that Google is making huge losses with their YouTube video sharing service.

YouTube has major expenses related to data storage and bandwidth consumption. Google has tried monetizing the service but the revenues are just not great right now.

RampRate founder Tony Greenberg is one analyst who now claims that Google is not losing much money with YouTube.

They are just not showcasing the true picture.

Greenberg said that Google wants the media to portray that YouTube is making huge losses as it helps them with deals with media companies and content providers.

He said: “Google is no doubt thrilled to let YouTube be known as a financial folly.”

Another analyst from the same firm Alex Veytsel added: “For years there was this perception that Apple was losing money hand over fist with iTunes. That kept a lot of negotiators in check. Baseball owners have done the same thing to help them in negotiations with players.”

Greenberg had this to add: “Google is building a Trojan-horse business model that protects their long term interests against telecom, cable operators and content owners that is as good as anything I’ve ever seen.”

Well the fact remains that YouTube is probably the most powerful broadcast medium the world has today.