YouTube Isn’t Profitable: What is Google Inc. to Do? (GOOG, GOOGL)



YouTube Isn't Profitable: What is Google Inc. to Do? (GOOG, GOOGL)

Welcome! YouTube Isn't Profitable: What is Google Inc. to Do? Even with a billion viewers, Google's (NASDAQ: GOOG     ) (NASDAQ: GOOGL     ) YouTube still can't squeeze out a profit. Last year, YouTube's revenue rose 33% annually to $4 billion, according to The Wall Street Journal. However, in paying for content and investing in better streaming technology, YouTube barely broke even, ultimately contributing nothing to Google's bottom line. YouTube's Android app. Source: Google Play. Why is Google having so much trouble monetizing YouTube, which it acquired for $1.65 billion in 2006, and how can the company help it achieve profitability? YouTube's biggest problems YouTube only started generating meaningful revenue in 2010, when Google launched skippable ads. This was a win-win situation for the viewer and advertiser, since the advertiser only paid if the ad was watched. In 2011,

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