Youtube Time to start charging users? Case Study example
Undergraduate
Case Study
Journalism & Communication
Pages 3 (753 words)
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YouTube has for a long time allowed users to upload and access material free of charge. This has endeared the company and its parent company, Google, to billions of users worldwide who enjoy a variety of clips, music and other fun material at no cost.

Introduction

During this time, spanning eight years, YouTube has had to rely on revenue generated through advertisements. It is only recently that YouTube’s potential to generate revenue using other avenues has been examined in full length (Elberse and Gupta). Partly, this is due to the limited revenue generated by advertisements compared to the cost incurred to keep YouTube running. In this case, the need to have YouTube generate more revenue is not only inclined to returns on investment but is also as much hedged in its long-term survival. It would be financially unsustainable to run a business that rakes in losses every year, even though this has not been officially confirmed by the parent company or the YouTube managers analysts have continuously confirmed. Even in this grim situation, there is little concern among most analysts as the company holds immense potential. This is if the number of viewership and users are to be considered from a business perspective (Elberse and Gupta). By 2009, YouTube was by far the biggest online video site with 129 million unique viewers in the U.S. since then the number has skyrocketed, considering the growth in internet coverage both in the U.S. and globally. ...
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