Why YouTube Is Still A Success For Google Even Though It Doesn't Make Any Money Currently

Wall Street General recently published an article which highlighted that even though revenue of YouTube is growing, Google Inc GOOGL is still not making money off it.

Henry Blodget, CEO, Editor-in-Chief, and Founder, Business Insider was on CNBC Thursday to discuss Google's YouTube problem.

"YouTube is a force for the next generation and it is gradually if Google doesn't blow it, there are no signs they are going to blow it, it is going to gradually take over the world," Blodget said. "You look at the viewership number, you look at the revenue they are now a reasonable size cable network."

"In terms of revenues they are closing in on CBS as a broadcast network ultimately it's going to be a colossal global business and viewing platform."

YouTube's Growth Is Inevitable

"There are scale of advantages there though, infrastructure, the fact that they have a social network, implementation where you follow folks and you get their new videos," Blodget said. "Fact that they have hundreds and thousands of great content providers all over the world, building their platform on YouTube and making a living doing it, some of them are incredibly successful. It is tremendously powerful platform and ultimately it's only going to grow."

Blodget also remarked that, "one area that Google could invest is saying okay now we are going to get some longer form, super popular stuff that is only here, you are going to login to YouTube to check it, maybe they charge a subscription fee, but it's still early days, they are in a great position over the next 10 to 20 years."