Home > SXSW QUESTIONS > YouTube Profits: Is YouTube A Data Miner or a Video Service?

YouTube Profits: Is YouTube A Data Miner or a Video Service?

March 7, 2015

Questions for SXSW Panel: Is YouTube unprofitable because Google takes YouTube user data from users of music and refuses to include it in royalty revenue derived from those users?

MUSIC • TECHNOLOGY • POLICY

You’re going to need a bigger boat…

You’ve probably seen a lot of handwringing in the press from YouTube about the Google-subsidized division isn’t profitable.  Aside from the fact that YouTube has experienced yet another self-created public relations disaster with Zoë Keating that will no doubt serve up the company’s SXSW panels like chopped beef, why would YouTube be telling the world how unprofitable they are?  Kind of an odd thing for Google to opt for the “poor me” treatment which no one–and I mean no one–believes, right?  Why would Google be putting out that story?

Maybe as an excuse for why their royalty rates are so low?  But is it even true?  If you look at YouTube as a video service, maybe Google can cook the books to show whatever they want.  Big advertisers don’t typically sign up for a YouTube-only campaign.  The media buy is across all Google platforms…

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