Valleywag
Last summer, VideoEgg CEO Matt Sanchez complained that Google ripped off his company's innovation when YouTube began selling ads that popped up along the bottom margin of videos while they played. Now Sanchez doesn't so much care. YouTube, he told NewTeeVee, is only going to earn revenues of about $70 million to $90 million in 2008. InVideo ads — the kind Sanchez claimed Google ripped off — will be an even smaller part of the pie. Bear Stearns estimated YouTube revenues will reach $103 million this year, $22.6 million from InVideo ads. The low numbers have Sanchez suddenly bearish on online video. He told NewTeeVee that if YouTube can't pull significant revenues, the market definitely isn't big enough for VideoEgg's aspirations. He's steering the company's resources into brokering advertising for casual Flash games instead, a market which is about as underhyped as online video was in 2007.
Competitor: YouTube's 2008 revenues will reach maybe $90 million
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9:40 AM on Wed Apr 2 2008
By Nicholas Carlson
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That Bear Stearns is a helluva place
Bear Stearns estimates that 2008 revenues for YouTube will be $90 million, of which $22 million comes from InVideo advertisements. Using the Bizak Business Valuation Calculator we can get a rough estimate of YouTube’s revenue valuation and EPV (Earnings per Visitor), which is the amount of money earned from each visitor to the site. If you divide the yearly revenues by 12 you get a rough monthly revenue estimate of $7.5 million. We then enter these numbers into the calculator. At this point we’re assuming YouTube has zero costs but in actuality we know this to be false. We’ll factor in the enormous bandwidth costs of video hosting in the next section. Based on the Bizak calculations YouTube has an EPV of $0.12 and a Bizak Estimate (business valuation estimate based on revenues) of $360 Million. This valuation is obviously a lot less than the $1.65 Billion Google paid for YouTube, however YouTube is a premium brand that must be (and was) factored into the purchase price. From: http://tomokeefe.com/2008/06/04/monetizing-youtube/
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