"In an eye-opening essay, Bernstien Research analyst Jeffrey Lindsay proposes a radical idea on how Google might address the business model problem that now afflicts YouTube: charge people listing fees for uploading video to the site.I can only imagine what Vimeo's financials are. As just one of the many online and media properties of Barry Diller's IAC/InterActiveCorp, I suspect that if Vimeo doesn't show an encouraging path to profitability soon, they could likely be shut down and join the "dot-com graveyard."
Lindsay writes in a note to clients today that YouTube in 2009 should generate revenue of $200 million to $250 million, but with costs in the $400 million to $700 million range. I would note that Google doesn’t provide any financial data on YouTube, but the numbers are consistent with what other analysts have estimated: back in April, Credit Suisse analyst Spencer Wang calculated that Google will lose $470 million on YouTube this year.
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posted by chunking express at 1:39 PM on July 14