Thursday, May 1, 2008

Google's CEO says: Youtube needs to bring in more money

Youtube is certainly Google's second biggest crowd puller after Google's own search engine technology but it has yet to bring in a significant amount of revenue.

Schmidt said YouTube planned to introduce a series of new products aimed at generating advertising revenue. Asked by interviewer Maria Bartiromo what the timeframe for making money was, Google's chief executive answered:

"We believe the best products are coming out this year. And they're new products. They're not announced," Schmidt said, adding that such ads would be "much more participative, much more creative ... much more interesting in and of themselves."

Shares of Google rose $26.39 to as high as $584.86 after CNBC broadcast portions of the interview on Wednesday. The stock is off 15 percent in the year to date, but has recovered 40 percent off lows hit six weeks ago.

So the priority of Google for 2008 according to Google's top brass Eric Schmidt, will be to make Youtube become a major revenue earner for the search company and show only best streaming video clips and top videos.

It will be interesting to see how Google plans to monetize all the eye balls that Youtube continues to attract (Ed : Perhaps, Youtube could start paying people for watching ads?)

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