You Tube How does it generate cash?

YouTube was sold to Google for $1.6Bn, and has yet to make a profit, am I the only one who sees a problem with this.

The boys and girls at Google are a very clever bunch and I have no doubt that they do have a money making scheme lined up for YouTube, but its taking a bit of a while dont you think?

For my IMS assignemment I have decided to have a stab at rectifying this problem and working out ways of generating some cash with YouTube without screwing over its users.

Got a bit of an issue working out what academic theories to apply to my idea though.

The plan is simple.

YouTube weekly podcasts, containing an hour of the weeks best clips as rated by YouTube users. That way users can watch YouTube content on the move, without an internet connection and the company can make money by selling ad space on the podcast, either in the form of total sponsorship or ads in between clips.

Trouble is its sort of a backwards step, although the content would be democratically voted for by the users, it would not necessarilly be the content some users want to veiw, which kind of takes us back to old style broadcasting, (sort of) Agggraaahhhh! maybe this idea sucks, I'll stick my head in a few journals and get back to you. TTFN