Is YouTube’s business toast?

News:  Tech Crunch’s Erick Schonfeld has the best analysis I’ve seen about YouTube’s market share and business model.  Google CEO Eric Schmidt openly concedes that it has faced difficulties in converting YouTube into a money-making venture in the same way Google has.  Schonfeld estimates or speculates that YouTube’s advertising revenues (in the neighborhood of $200 million) represent only 15% of the online video market, even though YouTube commands 37% of all videos watched online.

One Response to Is YouTube’s business toast?

  1. Tom OKeefe says:

    Forbes estimates that YouTube will bring in $200 million in revenues for 2008. Plugging those estimates into the business calculator we get an EPV of $0.21 and a Bizak Estimate of $758,000,016 – considerable better than the $0.06 EPV and $318 million valuation (on $90 million revenues) but lower than the $1.65 billion purchase price.

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