Google purchased the video sharing website-Youtube for $1.7 billion about 9 years ago—and today it has emerged that the tech giant is struggling to break even each year.
Even though Youtube is making a lot of content creators huge sums of money each year, the company begin the running of the website hardly makes any profit. Analysts say Google’s inability to rack in profit on Youtube is due to the fact that there is ‘a lot of junk’ on YouTube and that the large number of young users do not buy anything from the adverts.
Youtube is making some money—the website makes good money but its vast infrastructure wipes out the $3.8billion revenue that it brings in each year. It definitely costs a lot to run the website and as such, Google is on a look out for profit maximizing schemes…