The press loves to document the downfall of the mighty. Google's problems securing big media deals and effective monetization of YouTube's massive user base and extensive video catalog have become a
regular pastime for some reporters at big publications. Over the weekend, here's what YouTube made in 2006: $15 million.
That's according to a Bear Sterns analyst note. However,
despite operating YouTube "from deep in the hole," analysts refuse to pronounce the $1.65 billion Google acquisition a failure -- yet. UBS analyst Ben Schachter points out that YouTube is one of
several Google investments "for the long term," as it seeks to move beyond search. He adds the search giant's influence in the media world has already resulted in wide-ranging deals with the NBA, Dow
Jones & Co., Conde Nast and Sony BMG, among others. Should these rev-share tests go well, Google will ramp up advertising on YouTube, though for now it won't do so.
Big media, of
course, wants to retain a degree of control YouTube isn't willing to provide, and since there's no meaningful ad revenue there -- as evidenced by the Bear Sterns report -- many are now trying online
video on their own. However, YouTube's massive, loyal traffic might bring them back.
Read the whole story at San Francisco Chronicle »