New Estimate: YouTube's Bandwidth Bill Is Zero
TechDirt Oct 16 09Earlier this year, there was an analyst report that got a lot of attention, claiming that YouTube's bandwidth bills were huge, and there was no way the site was likely to ever become profitable. Google critics gleefully danced on Google's grave, mocking the company for the purchase. However, the estimates by the analyst seemed off, and we began to wonder if the ancillary benefits of YouTube actually made the site a much better investment. In fact, Google later hinted at exactly that point. One of the major problems with the original estimates of YouTube's bandwidth costs were that they simply extrapolated out the cost of bandwidth, and never took into account Google's unique position -- such as the fact that, during the "down" years a while back, Google scooped up a ton of dark fiber for pennies on the dollar. Full story...
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