AFI BLOG: Media and Technology

Silicon Alley Insider

The old wisdom: YouTube (GOOG) dominates Web video but can’t make any money from it. Forbes’ wisdom: YouTube still doesn’t make much money, but a bit more than people think.

The mag says YouTube will make $200 million in revenue in 2008 and $350 million in 2009. These are unsourced numbers, but also not denied by YouTube head of content partnerships Jordan Hoffner, who participated in the story.

If true, that about doubles everyone else’s revenue estimates for YouTube, including the widely-quoted $90 million estimate from Bear Stearns analyst Bob Peck or Morgan Stanley analyst Mary Meeker’s $75 million to $189 million estimate. How does YouTube get there?

-Front-page YouTube ad: $175,000 per day plus a commitment to spend at least $50,000 more on YouTube or Google.
-Branded YouTube channel: $200,000 apiece.

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