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inevitable decline of cable TV became much more active. I will describe this service in more detail and compare it with classic TV in the third chapter. 1.2 Profitability of the website There are still a lot of insinuations about unprofitability of YouTube. Whether true or not, it is hard to judge because Google did not ever reveal how much money they earn. Bernstein Research analyst Carlos Kirjner said in one report, that all researches about YouTube done by different analysts are not based on real facts and representative data, but more on belief and gossips. Moreover, except these anecdotes and gossips shared by Google, there is no information and data about user’s behavior and preferences – what they watch and how much (Krause, 2016). On the other hand, it seems that it is highly unlikely that such giant as Google will keep a business without revenue. Google bought YouTube for $1.65 billion in 2006. While in 2015 Bank of America Merrill Lynch defined YouTube’s value at more than $70 billion, which is 40 times more than Google paid for the website. The bank also predicted that YouTube’s income will reach $13 billion in 2017 (Krause, 2016). Maybe these gossips about unprofitability are due to the fact that during several years after the purchase, Google still struggled to invent some functioning ad model. At that time YT was treated as one of the many parts of its business, without giving it any special value. But since 2013 the way that Google talks about YouTube has changed, and it seems that YT has become their key interest and the main source of income (Roettgers, 2013). 15PDF Image | Youtube a new era of TV
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