Friday, April 3, 2009

YouTube Deflation

One of the primary drivers of the collapse of media business models has been the availability of funding to startups who give away stuff for free in the hope that they will make it up in volume at some point. Youtube has tons of traffic, which brings tons of cost with it. As a startup it was funded by venture capital. Since Google bought it, it is funded by Google - which is a good thing because it is currently losing $500MM a year!

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