Google's YouTube was put into the background after the tech titan's new Nexus 7, Chromecast and Google Glass innovation. However, several analysts said that it shouldn't be the case.
According to a report in the Wall Street Journal quoted by the Guardian newspaper, YouTube was able to bring around US$4 billion to US$5.6 billion in profit to Google. The figure was said to be 10% of the total revenue of Google.
AllThingsD noted in March that the advertisement profit of YouTube was not "keeping pace" with the rising view-counts, costs and YouTube partners. However, in July 19, MarketWatch.com published, "Google's bet on YouTube is finally paying off. That's good news for Google bulls looking for another source of revenue to sustain the company's annual growth rate, which has slowed since the purchase of Motorola Mobility last year."
After Google's acquisition of YouTube, the site already became internet's do-it-yourself innovative sector. Google was able to capitalize on the number of views and was able to record US$1.65 billion seven years ago. Analysts further noted that since the shareholders of Google were happy about the revenue from YouTube, the site could be Google's real secret weapon to stay away from Mccrosoft's fate.
Join the Conversation