Despite Justin Bieber Videos, YouTube Still Losing Google Money

Google CEO Eric Schmidt let slip that YouTube has yet to achieve profitability, after over five years of sharing videos of awesome explosions and unlikely animal friendships with the world. Schmidt did say that it's "nearing profitability," which means nothing.

The statement makes one revisit some of YouTube's recent decisions through the lens of makin' that paper—on the one hand, pay-per-view movies could be a solid revenue stream. On the other hand, user-friendly decisions like ad-skipping and bumping up video length cut into the bottom line. We'll have to wait and see how soon "nearing" really is. [All Things D]

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DISCUSSION

As a singular source of advertisement revenue I am not surprised that YouTube is not profitable. However, Google has been linking YouTube to countless other products improving their value including directly into Google's primary search engine. I am not certain if there is any way to calculate in the additional profitability that YouTube presents across the entire portfolio but I suspect Google has finally started to see the revenue with their acquisition.