YouTube Posts Disappointing Results

YouTube_logo_2013.svgWhile Google may not release official revenue figures for YouTube, a new report suggests they may be significantly lower than previously estimated.

Citing two different sources, a report by The Information claims that Googles gross revenue from YouTube in 2013 was $3.5bn (£2bn), with net revenues of only $1.5bn after payments to partners were made.

While the report says the YouTube remains profitable, the figure of $3.5bn is considerably lower than previous forecasts. A 2013 report by eMarketer suggested YouTube would bring in $5.6bn in gross revenue, while a 2012 article by Citi analyst Mark Mahaney predicted $3.6bn in gross revenue and $2.4bn in net.

YouTubes position makes it difficult to compare to other companies, but there are some services we can look to for context. Video streaming service Netflix brought in $4.3bn in gross revenue last year, while Twitter, which like YouTube relies on user-generated content, saw $665m in revenue in 2013. A traditional network like ESPN was forecasted to earn $11bn in revenue in 2013.