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Why YouTube Is Still A Success For Google Even Though It's Not Making Money


The Wall Street Journal recently published an article that highlighted that even though revenue of YouTube is growing, Google Inc (NASDAQ: GOOGL)(NASDAQ: GOOG) is still not making money off it.

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

YouTube Is Going To 'Take Over The World'

“YouTube is a force for the next generation, and it is gradually – if Google doesn't blow it; and here 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, this is going to be a colossal global business and viewing platform.”

Related Link: Google Shares Continue To Gain

YouTube's Growth Is Inevitable

“There are scale advantages there, though. The infrastructure, the fact that they have a social network, implementation, where you follow folks and you get their new videos,” Blodget said.

“The 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 [a] tremendously powerful platform, and ultimately it's only going to grow.”

Blodget also remarked that "one area where Google could invest 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,” Blodget concluded.


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Posted-In: Business Insider CNBC CNBC Henry Blodget Wall Street General YouTubeTech Media