How did Youtube make money?

Hi,

Does anyone know how youtube used to make money? i don't use the site much but as far as i could tell they had no advertising on the site?? so how did they pay off their massive bandwidth bill each month?

 

They had funding from venture capitalists.

More info @
http://en.wikipedia.org/wiki/YouTube
http://en.wikipedia.org/wiki/Venture_capital

In this case the investment payed off quite well.

 

Thanks for satisfying my curiosity.

 

they are going the amazon.com route of get traffic now and worry about making money later.

 

They never did really they were making heavy losses, i read somewhere their bandwidth bill was about $1M per month

 

thats what i read as well quite a gamble to take.

 

I dont think any other company in the world paid a bandwidth bill of $1 million....sounds quiet huge...

 

With the amount of videos they have, I'm not surprised the amount of bandwidth. New record for 1 site?

 

Sold to Google

 

Seems like people featuring Youtube videos on their site are the ones making money (ie. utilizing Youtube's BW)

examples:
video sharing sites: squidoo.com, flixya.com
ad player: adbrite invideo (in beta)
downloaders: heywatch.com, Videodownloaders (multiple)

 

Wow, this is pretty interesting stuff. Youtube basically took the failed idea of thousands of Internet bubble companies that generated traffic without revenues and failed and made it work this time. Obviously, that is because there are now ways to turn traffic into real revenues with banner ads, PPC ads, affiliate ads, etc. I wonder if we are in for another round of traffic-generating internet businesses funded by deep-pocketed VC's...

 

if youtube can somehow use "video ads + regional targetting" then tv advertisers will start moving towards youtube and hence the money ll start flowing

but i think the advertisers should take the "product placement" route instead of old "30 seconds" ad or something.........

divyansh sharma

 

They made money by selling it

 

How did YouTube make money? They didn't....until Google bought it

 

How is Craigslist making money?
Are they waiting to be bought as well?

Toronto Painters

 

theres many questions here. so i will ask also.. hows dmoz.org get money also..

 

There are many companies you can ask how they make money, i picked on Youtube as they must have gigantic bandwidth bills with all the videos on the site. so exceptional circumstances.

 

Now that google bought youtube, i might expect that some google video ads will get to come soon.

 

Im sure some adverts of some description will be added, may be at the beginning of each clip? or maybe on the page? lots of options available to them.

 

Youtube was not making any profit since the beginning. Even after Google acquired them, I don't think they make any profits yet.