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INTERNET sensation YouTube is set to rack up a £107million loss - and that's the best case scenario.
Despite millions of people logging on every day to check out the site's videos, San Francisco IT consultants RampRate said owners Google would take the massive hit.
That's far better than Credit Suisse's £288million estimate from April. But the bottom line is that Google are not making any cash out of YouTube.
The site cost them more than £1billion when they bought it off founders James Karim, Steve Chen and Chad Hurley in 2007.
And as long as they don't charge its users, they will struggle to make money from it.
Social media consultant Craig McGill said: "When the new iPhone came out, uploads to YouTube increased by 400 per cent which shows just how much of a demand there is for this kind of thing.
"There is no way Google are going to get rid of something that creates that kind of demand even if they haven't as yet worked out a way of making money from it.
"If Google thought that they could get away with charging even just 10p per upload then they would but they know internet users are so used to being able to do it for free that they would simply go elsewhere."
Google are expected to rake in £147million in advertising revenue from YouTube this year.
The site's current top 10 features a toddler biting his brother's finger, a motivational singer dancing and various pop videos. But its users don't stop to consider how much it costs to get those films online.
Google have to pay for data centres, hardware and software to deal with the 20 hours of video YouTube users upload every minute.
They also pay top rates for premium video content such as TVshows.
The costs are estimated to be up to £232million a year, although Google remain tightlipped about the actual figure.
Not that Google really have all that much to worry about, with their overall profits reaching £870million for the first quarter of this year.
In theory they could easily support a loss-making venture such as YouTube, the third most popular site on the internet.
And some digital economy experts reckon that YouTube is anything but a burden to Google.
Keith McMahon, senior analyst for the electronic business experts Telco 2.0 Initiative, said: "There are many urban myths surrounding the way that companies extract value from the internet.
Status "Google's spin-off benefits from owning YouTube include the accumulation of our data and strengthening of their network design.
"And the more time people spend watching online video, the more advertisers will pour into marketing on the internet as a whole.
"There's no doubt that Google can afford YouTube."
McMahon also believes that keeping schtum about YouTube's true financial status works in Google's favour when it comes to negotiating with copyright holders.
But while Google can cover losses, what hope is there for other internet start-ups looking to copy YouTube's free model?
This post is brought to you today by Joel Ohman from DomainSuperstar.com
3 Reasons Why Hand Registering Valuable Domain Names is Not Dead
Do you ever hear someone say that “all of the good domain names are already taken” or that “there are no longer any worthwhile domain names available to hand register”?
It’s not uncommon for those in the domainer community and also those who have less experience looking for domain names to become frustrated when they find domain after domain that they like already registered. But is it really true that hand registering domain names is dead?
Here are 3 reasons why I believe that there are will almost always be many valuable domain names available to hand register:
Hopefully this short article has convinced you that there are still many valuable domain names available to hand register. Start searching now!
Thankyou Joel, for taking the time to write this article for RegFeeNames.com
If you are still looking for a domain then why not visit Omnis Network - I have been using them recently and I'm happy with all of there services.
This links take you to there $7.95 Domains $7.95 Discount Domain Names
There are many other Registrars out there you dont need to use Omnis just a service I like.
Thanks For Taking The Time To Read.
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I suspect Im not the only person to feel this but why do some domainers have it for each other?
Someone recently contacted Neustar about loads of .us domains I own trying to get them deleted but they didnt realise that I do business in the US - So Im allowed to register these and Neustart dont have an issue with it.
Then next I get a comment on my site from someone called James who doesnt leave an email address that works that states this
"What have you been smoking? You've developed a network of useless webpages with multiple blatant Adsense TOS violations. You've got anywhere from one week to 3 months before google bans you. Why? Because your sites have just now been reported"
Now if they have reported me, fine I have nothing to hide with my sites but why?
Why are other domainers out to get each other?
We need to work together not againest each other!
Since joining Noomle.com a free minisite provider on the 6th of Feb 2009 we have built out a few site and have see some great results.
CheapRims.us - Now ranks number one in Yahoo! for the term "Cheap Rims" - We are higher than CheapRims.com which I cant believe - Im very happy with the results in just over ten days we have made this years registraion fee on the domain and I can see a nice health profit only growing on this domain.
EastScotland.com - Launched the same time is currently number two on Yahoo! but the search term isnt as high for this keyword so the traffic has been smaller and not making as much as CheapRims.us - I have now put another 20 keyword domains on too test!
Remember people I have guys looking to buy profit making names - Email Me - Sell Your Names!
Today we have 148 American Motels .com .net & .org all available for you to register
Im also looking to sell a few domains personally
All are standard .tv renewal fees please Email Me If You are Interested
Also Im still looking to buy revenue making portfolios again please Email Me
So here are todays domains - I hope you pick something up you like.
Well its been a busy week - I have had a few offers on some more domains and looks like it could turn out to be a great year!
Im selling Rejoice.tv - Anyone interested in owning this beauty? Standard Registration Fee
Also Im looking for anyone selling there portfolios that are generating Revenue - I have buyers ready!
Well anyway Im always on the look out to help other domainers so any questions or fancy sticking a post on here let me know.
Today I have listed 167 American Limos.com .net & .org that are all available for Reg Fee - So remember tell a friend!
Dont forget to look through the thousands of other names I have given away for free either!
Have A Great Day & Happy Domaining!
I want to appolgise guys - I havent been online as much searching for new names I have been really busy working on some brokerage deals which is extremely tough just now in the present market but I do have people who are wanting to buy REVENUE making portfolio - I charge 10% commission on the sale which is really fair and I shall never reveal any details of the deal if you would rather deal in complete privacy - Email ME NOW
Well I read a great post today on Elliots Blog about some domains and I thought this is an area Im not involved with lets look at some domains to see if I could and guess what I picked up for Reg Fee!
five great names - They are for sale - Quick Flip if the price is right let me know.
Anyway great reg fee names here todays 107 American Escorts mainly .net and .org but still a few .com domains in here.
Have A Great Day & Enjoy picking up these names only from RegFeeNames.com
Dont Forget TELL A FRIEND ABOUT RegFeeNames.com
I closed the sale of WeddingDirectory.us - Yesterday on Sedo and it wasnt huge but every little helps! It's always good to start the year with a sale.
I also picked up a great Adult domain its in the .hk ext for hong kong but I thought well its worth a risk of the registration fee for this great keyword domain.
My football team also won last night - Motherwell 1 Hearts 0 - Great game to watch finally seeing my team get back to the same form they played last year - See there website - http://www.motherwellfc.co.uk/index.php?option=com_frontpage&Itemid=1
Well back to the domains again - I have lots of names that I am brokering and I am actually looking for people that have revenue names to sell - I have buyers that are paying 4-6months revenue at present and others paying more. Email me - homes@wea.la for more information but Im only looking for .com .net and .org domains.
Here are todays domains only available from RegFeeNames.com - Remember tell a friend spread the word that we have these FREE lists of excellents domains there are thousands of names here on RegFeeNames.com
Have A great Day & Happy Registration.
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