CEO: YouTube in Trouble, Too Many Users & Not Enough Cash
YouTube is about to go down the gurgler according to Benjamin Wayne, the CEO of Fliqz.
He stated in his blog that YouTube, was an "incandescent tower of video Babel; monument to the sloughed-off detritus of our exponentially-exploding digital culture".
However he claims that it has reached the zenith of its meteoric rise; and Icarus-like, wings melting; is spiraling back to earth.
Wayne pointed out that YouTube is on track to lose roughly $470 million in 2009 something its overlord Google is not going to be happy about.
He said that the economics are hard to overcome and there is no way that YouTube will make enough cash to be sustainable in the long term. The outfit would have to make $9.48 for every video impression shown something which they cannot do.
Wayne added that YouTube's traffic will grow and cost a fortune to run. He thinks that eventually the outfit will have to come up with a subscription.