News: Henry Blodget at Silicon Alley Insider has some insightful analysis of William Morrison’s analysis of Comscore’s recent data on Google and YouTube. (Sorry for the double hearsay.) Here’s the good and the bad for YouTube:
The good: YouTube accounts for 28% of the total minutes spent on Google sites.
The bad: YouTube’s profit margins are still very low compared to other Google services.
According to Blodget, “The bigger YouTube gets as a percentage of users and minutes, the more Google’s profit per user/minute is likely to drop.”
Analysis: All of these numbers can shift if YouTube’s InVideo ads actually attract advertisers. Google is banking on this new system to generate revenues for YouTube. Of course, the copyright lawsuits against YouTube could throw a major monkey wrench into these plans, particularly if YouTube suffers a major defeat in one of the bigger cases.
