Why isnt YouTube Making Money?Web companies that rely on advertising are booming in developing countries. YouTubes audience nearly doubled in India and Brazil. This sounds like good news. Unfortunately, many of these big Web players with huge global audiences and renowned brands are struggling to make even tiny profits in that part of the world. Operating costs to deliver images and videos to users are high in countries where bandwidth is limited, especially for sites that have a lot of user_generated content. At the same time, advertising rates are low. One extreme approach would be to shut off all those countries. Few Internet companies have taken that option. Case Questions Why isnt a big audience enough on its own to make money? Why has YouTube remained at break-even at best? What other ways would you suggest to raise revenue and/or lower costs for internet companies in developing countries?
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