YouTube – the video sharing service that Google purchased for a whopping $1.65 billion and that is often seen as a liability is finally making a turnaround. According to a report on the New York Times, YouTube is expected to bring a revenue of $450 million that could more than break even for its costs and help the service finally make profit.
Of course annual revenues of close to half a billion is not too significant for a company that makes profits of over 1.5 billion every quarter. But the credit for the turnaround is definitely due and is attributed to the several deals and partnerships that YouTube executives have been putting in place to bring more revenues. YouTube has been signing up for sports streaming partnerships with the likes of the Indian Premier League besides recently signing up with movie studios for online movie streaming.
Given that we are already inching towards the last quarter of the year, the true worth of these new partnerships will only be realized as we step into 2011. Hopefully YouTube makes considerable profits in the next fiscal to justify Google’s decision to purchase the service back in 2006.