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YouTube Starts to Sell Music and Video Games

Youtube Selling Music and Video Games

Have you ever came across a song on Youtube and wanted to buy it? (Just like how you can in Myspace …) Well YouTube is actually counting on it! YouTube, which is now the world’s most popular online video blogging and sharing community, will start to sell music and video games via their website to grow revenue from its massive audience and eventually hope to justify the massive amount of money ($1.65 billion) they spent to acquire YouTube back in 2006.

The “click to buy” buttons has already started to appear in the U.S. today and it simply connect viewers to the product page on Amazon.com or Apple’s iTunes.

As a start, YouTube initially will receive a commission for each sale of songs from two major labels, EMI Music and Universal Music Group, and video games from Electronic Arts. But I think eventually YouTube will expand its horizon by promoting sales of other products such as movies, television shows and concert tickets.

Google usually does not disclose YouTube’s financials, but analysts at Piper Jaffray Research estimated that YouTube would earn about $200 million in revenue in 2009, compared with estimates of around $27 billion for Google.

Until now, YouTube has mainly focused upon advertising sales as its main source of income. It is still experimenting with a range of different formats to take full advantage of the massive popularity of the site, which has nearly 13 hours of video uploaded every minute. (reports Reuters)

YouTube had 330 million visitors in August 2008,the site served up about 5 billion videos in the United States, according to the latest data from comScore Inc.

“There’ll be lots of different solutions for lots of different problems,” Shishir Mehrotra, YouTube director of product management, said in an interview. “We’ve tested a lot of things already, and we’re going to be testing more in the future. Some will work, some won’t.

Google Chief Executive Eric Schmidt has pledged to investors that YouTube will make money once it hits on the right formula. Last month he said Google was being patient. “We are where we should be,” he said.

My Two Cents

Well certainly its a very good move. I am surprised why Google hasn’t thought of this before! Youtube has became a platform for many young upcoming artists/performers who has become ‘famous’ after 1-2 years of heavy Vblogging in YouTube. And since they are famous now they are getting deals with big record companies, but all these are not really making Google any money.

I think they should also limit how YouTube can be used in a corporate level. For instance, if a big corporation like Apple uses Youtube for Promotion they should be charged. Because I think its just not fair at the moment for Google.


So, what do you think ?