It’s well-documented by now that Google has lost money on YouTube since acquiring the popular video site some three years ago. Back in July, Google CEO Eric Schmidt told Reuters that he was pleased with YouTube’s trajectory and believed the site would become profitable in the near future.
Analysts and industry critics were quick to ponder how the search giant could hope to make their acquisition profitable. After all, the cost of streaming so many videos couldn’t possibly be offset by advertising. Or could it? (more…)