Google CFO: YouTube profits soon
July 18, 2009
Google Chief Financial Officer Patrick Pichette has said that its YouTube video site should be profitable in the not-too-distant future. “We’re really pleased both in terms of its revenue growth, which is really material to YouTube and, in the not long, too long distance future, we actually see a very profitable and good business for us,” said Pichette.
He acknowledged the company decided to tout YouTube’s “very credible business model” in the wake of a spate of negative analyst reports and press stories that questioned the company’s ability to make money from its video site.
Nikesh Arora, president of global sales operations and business development, said that branded advertising has picked up significantly on YouTube, as well as other display properties. “We are beginning to see that YouTube has established (itself) in the advertiser space now that the YouTube home page is of relevance and is desirable for customers. So we are seeing significant sell-through in most of our major markets where we have YouTube home page for sale,” he said.
The company indicated it was monetising roughly triple the number of monetised views from one year ago. Arora indicated that advertisers have shown a lot of interest in the short clips that Google is beginning to acquire from partners like Walt Disney, and he suggested the next phase would involve moving toward long-form video.