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As the recent reports on the progress and the business model of YouTube was disappointing. Google Inc. has come up with some good ideas on how it can improve the profit generated through YouTube and this technique of including advertisements in the start of the video and in between in expected to generate a good amount of income through those videos available in YouTube. Mr. Patrick Pichette, Google’s Chief Financial Officer, in a conference call, has also referred this. He has said, “In the not-too-long-distant future, we actually see a very profitable and good business. We are really pleased with the trajectory.”
The idea behind is to introduce new advertising formats in which commercials would be played either before playing the video or during the videos and this method is expected to work out well as the viewers would anyway be watching the commercials. Recent partnerships that have taken place with companies like those that Walt Disney Co. is also expected to generate more profit.
Google acquired YouTube three years ago for $1.65 billion but the question now is on whether it is really worth and the internet world is wondering on whether it is really paying off. But Mr. Patrick Pichette and other public statements are putting in some sort of hope and sound promising. However, certainly, “not-too-long-distant future” does not answer much on how long it would exactly take. The Google team seems to have some definite goals now with regard to YouTube. They seem to plan something keeping the future in mind. The director of online sales Mr. Tom Pickett has said, “Our goal is not just to be a profitable company. Our goal is to be a huge economic force for our partners and for our advertisers – and in the end, that will benefit our users.”
YouTube is saying that the improving financial status of this huge video website is a result of the incremental improvements that have been taking but it looks as if it has been a sole change caused due to the request and efforts of Google.
YouTube after all these confusions is trying to make money through all possible resources that visit the website. They are now charging and making money from the big ads on the home page, promotional videos like movie trailers that are displayed on this website. It also includes the text ads when they search for content, the commercials that are played before, during and after the videos are played and all other possible ways. Both Google and YouTube are expecting these efforts to be fruitful. The technical world and the users are quite confident about it, as it might not be that difficult for Google to make it happen as it has quite good amount of experience in making profit out of something like this.