Quote:
Originally Posted by Lucien21
I've heard it said that YouTube pays $1 million a month in bandwidth fees.
Love to see how that makes money.
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They also have 65 employees which if you pay them about 80,000 a year (which is in the low bracket for engineers in the bay area), it amounts to at least 4.8 million dollars. Plus all the servers that they host all this information on, and they have an office in San Bruno, a very expensive area. They are definitely not profitable. But in the tech business, almost no one starts a company with their own money. You have Venture capitalists (VC's) which usually invest in 100's of start up companies, on the hope that one of them will turn out to be a YouTube or a Google, and more than cover for the 95% of the start ups that go under.
After the burst of the .COM bubble, the new trend in tech companies has been to survive long enough to be acquired by a giant. You rarely see any new players popping up (besides google), but then you have all these companies like Flickr, Youtube or myspace that linger long enough to get bought up by bigger corporations. The main key for internet startups now is getting traffic, because that will interest companies like Google, Yahoo or Microsoft to buy you.
