YouTube’s first step to making money

23 08 2006

The big news in the tech world today is that YouTube has teamed up with none other than queen of publicity, Paris Hilton, to launch her own channel on YouTube. Since Paris is promoting her debut album sometime next week, this channel will serve to play her music videos, an inside look at her life, and also will be the launching point for all of her new singles that she debuts.

Apparently, YouTube pays around $1 million per month for bandwidth usage due to the high level of traffic on their site and the high level of data transfer required for streaming videos. Many people thought that if YouTube kept going down this slippery slope of having cost after cost, they would eventually go down under. Though this model is unique, they are capitalizing on two key aspects:

  • They have an audience, the biggest audience on earth essentially and stretches to almost all demographics – the Internet is much more easily accessible than any cable tv
  • The demographics on YouTube are perfect for a young popstar like Paris Hilton. As we all know, whatever Paris does, people follow suit

In my opinion, this is a huge win for YouTube as they’ve finally realized a method of determining how they make money on an advertising model which is outside of google Ad Sense.  Hopefully we’ll begin to see more players follow suit.  Fox has launched a huge prison break advertising campaign (which is my new favorite show btw…if you like 24…you’ll love prison break…just bought the first season…and i digress) and the impact of that will perhaps cause others to follow suit.  If they can make this into a strong revenue generating model, we will begin to see some huge new possibilities for these ex PayPal boys in San Mateo.

Just my $.02

–SD

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10 responses

23 08 2006
nuaa

$1 million a month??!?!?! that’s like more than….. everything!!!

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