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Valleywag
After Yuri Baranovski's Web TV series Break a Leg reached two million views on YouTube, Google cut him a $1,600 check. In advertising math, that translates to an $0.80 CPM, or cost per thousand views. Taking what NewTeeVee knows about YouTube's partner program, disgraced stock analyst Henry Blodget suggests that YouTube charges advertisers a CPM between $1 and $3.20 and gets to keep between $0.25 and $2.40. The equation's solution: On 3.4 billion YouTube views in January, Google grossed between $850,000 and $2.72 million. Taking the higher estimate, YouTube will have paid back Google for its $1.65 billion acquisition price in another 607 months.
Watch this YouTube video 1,000 times, and its creator will earn 80 cents
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9:20 AM on Thu Apr 17 2008
By Nicholas Carlson
478 views
4 comments
Comments
Keeping 75% of the revenue (and only paying out 25% to the people that actually did the work) isn't evil at all. Nothing evil there.
@WagCurious: Revenue isn't the same thing as profit.
If they pay $0.10 per gb and a video is 10mb, that's $1 in bandwidth costs per thousand views.
I guess web-based "TV" shows are going down hill just like regular TV shows did. Didn't some of those two million people have the heart to warn the others?
Turnover's vanity, profit is sanity.
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