YouTube announced they are now receiving 20 hours of video uploaded to their servers per minute, or 33 minutes per second!  That is an amazing number and will likely continue to rise.  A new YouTube feature makes it even easier to post video replies with just one mouse click, including on embedded videos.  This one feature alone should continue to push YouTube’s servers even harder.  However, with all that video comes a price.  A price of enormous bandwidth costs while YouTube struggles to monetize.

Analysts have stated YouTube is on track to lose 470 Million dollars this year to bandwidth, content licensing, hardware storage, sales and marketing and other expenses. 

YouTube Revenue – $240 Million

YouTube Expenses – $711 Million

So what will Google end up doing with YouTube?  They will likely copy their competition, Hulu.  Hulu is substantially smaller than YouTube, but has attracted big time advertisers with their focus on premium content like TV shows and full-length movies.  Being tied in with mainstream media giants like Walt Disney Corp and NBC Television probably doesn’t hurt when trying to attract advertisers.  So YouTube will jump ship and start offering more premium content like Grey’s Anatomy and the latest Wall-E movie.  Why?  Quite simple really, no one wants to advertise on a video of you arm-pit farting the ABC’s.   You can already see YouTube’s baby steps towards ‘Huluization’ on their ‘Video’ page.  They have added ‘Shows’ and a ’Movies’ tab to the sidebar. 

YouTube needs to monetize fast or Google may have to make some tough decisions to make on the video money pit.  Make money or face certain death YouTube *Evil Laugh*.

Extras…

Will they remove their company tagline of ‘Broadcast Yourself’? 

Will they remain their company TheirTube?