Why can’t YouTube turn a profit?
YouTube is to online video what Google, is to search: All but the default option for so many, far outstripping any competition. But unlike its parent company, YouTube isn’t making a profit, and its competitors are growing.
“The thing that really hits you is how tough it is to run YouTube,” says Wall Street Journal reporter Rolfe Winkler. “This isn’t a site that makes money.”
The company investing in tons of servers worldwide to make sure that you get speedy videos with no buffering. They are also spending a lot of money paying creators to produce the content available on the site.
But YouTube is only breaking even, possibly because most people visit YouTube the way they would Netflix, instead watching linked or embedded videos on other sites.
Winkler says YouTube hasn’t expanded its audience beyond teens and tweens, which could be a contributor. Tee company is working toward offering subscription services, starting with a Spotify competitor that will offer ad-free music from YouTube’s extensive library.
There’s a lot happening in the world. Through it all, Marketplace is here for you.
You rely on Marketplace to break down the world’s events and tell you how it affects you in a fact-based, approachable way. We rely on your financial support to keep making that possible.
Your donation today powers the independent journalism that you rely on. For just $5/month, you can help sustain Marketplace so we can keep reporting on the things that matter to you.
