Tech news from around the web:
- Citigroup analyst Mark Mahaney has broken down some of Google’s opportunities for new billion-dollar businesses, says TechCrunch. According to his estimates, YouTube’s gross revenues hit $825m in 2010 and will reach $1.3bn in 2011 and $1.7bn in 2012.
Tech news from around the web:
- Apple is lowering its minimum spend from advertisers on its iAds advertising platform from $1m to $500,000, says AllThingsDigital. The move, which follows the first run of iAd campaigns, is designed to appeal to smaller-scale advertisers who originally couldn’t afford the platform.
Representatives of a large part of the US media industry – with Microsoft also along for the ride – have lined up to back Viacom’s continuing legal battle with YouTube.
It is a timely reminder of how far Google still has to go to win friends in the media world. The transgressions of which Viacom complained now lie more than two years in the past, and a Federal court has already found in YouTube’s favour: but there is still deep concern over what some claim was the video site’s willful blindness to piracy in its early days. Read more
Though Google still makes the lion’s share of its revenues through search advertising, that may begin to change as Android, YouTube and display advertising mature, writes the FT’s Lex column.
Google is not the font of all knowledge, rather the rummage bag in which it resides. However, it has made bold predictions this week as it tries to grab the advertising industry’s attention. By 2015, the Googlers think mobile phones will be the most popular screen for web browsing, and the display advertising market will grow to $50bn. Read more
Dailymotion, Europe’s biggest online video challenger to YouTube, on Thursday said it had raised $25m in a new funding round led by the French Sovereign Fund (FSI). The French strategic investments fund, which is 49 per cent owned by the government, contributed $11m to the round, with all the existing investors, Advent Venture Partners, AGF PE, Partech International and Atlas Ventures, taking part.
Dailymotion chief executive Cedric Tournay also said the company had now hit break-even and expected to make a profit next year. The site now attracts around 60m unique users each month, up from 35m a year ago. Although it is dwarfed by YouTube, it is doing well to survive and grow in a market where competitors like Joost and Veoh have had to retreat. Read more
As Google celebrates its fifth anniversary as a listed company, the FT’s Lex column considers the search giant’s most costly acquisition — YouTube.
Bought in 2006 for $1.65bn in stock, the video streaming site has rocketed to a dominant position in online video . . . But Google shareholders are paying to provide the world with laughing baby clips. Estimates for the cost of streaming over 5bn videos a month range from $400m to $700m annually. While Google does not break out the figures, losses are likely to be in the hundreds of millions. Read more
The evolution of video on the web has been far from smooth.
Many start-ups have disappeared, concepts have failed and even YouTube has proved to be a costly acquisition for Google.
But that has not stopped the industry from figuring out ways to make money and survive. Read more