Peter Kafka

Recent Posts by Peter Kafka

YouTube’s Sea of Red Ink Downgraded to Great Lake Status

eightballRemember when the analysts at Credit Suisse decided that YouTube was losing close to half a billion dollars a year? That was then–five months ago, to be precise–and this is now: Those same analysts estimate that Google’s video site is losing a mere…$410 million a year.

That’s still not going to appease the folks at YouTube, who take umbrage at the assumptions analysts Spencer Wang and Kenneth Sena make when assessing the site’s financials.

But until the YouTube guys can provide the outside world with concrete numbers about their costs, sales, etc.–which they may never do–they’ll have to deal with a variety of guesses.

For what it’s worth, what’s changed here are the analysts’ guesstimates about YouTube’s bandwidth costs: They used to think the site was plowing through $360 million to deliver all those clips; now they think the number is $300 million. They’ve left all their other estimates unchanged.

Meanwhile, some perspective: Google’s YouTube adventure is still less than three years old. The “two kings,” as co-founder Chad Hurley put it in this video, only got together in October 2006.

[Image credit: greeblie]


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I think the NSA has a job to do and we need the NSA. But as (physicist) Robert Oppenheimer said, “When you see something that is technically sweet, you go ahead and do it and argue about what to do about it only after you’ve had your technical success. That is the way it was with the atomic bomb.”

— Phil Zimmerman, PGP inventor and Silent Circle co-founder, in an interview with Om Malik