I wondered what YouTube's revenue model was back before they got bought by Google - it's now clear that the revenue model was simple: "get bought by anyone". Slate reports that YouTube is burning through cash at a rate that makes me go "hmmm"
But it might surprise you to learn that one of the largest and most-celebrated new-media ventures is burning through cash at a rate that makes newspapers look like wise investments. It's called YouTube: According a recent report by analysts at the financial-services company Credit Suisse, Google will lose $470 million on the video-sharing site this year alone.
This is why - hearkening back to these two posts from earlier, I really, really wonder about the revenue model for free social media services. Advertising simply won't pay the bills. With YouTube, Google has been willing to eat the loss, but you have to wonder how long that will continue to be the case; eventually, some accountant is going to burst an artery in a management meeting.