http://variety.com/2013/biz/news/you...te-1200563738/
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In 2013, YouTube is expected rake in $5 billion, representing nearly 11% of Google’s total revenue, according to estimates by RBC Capital Markets analyst Mark Mahaney. Google does not disclose operating costs or other financial metrics for YouTube, nor does it get into specifics over what it pays out to content partners except to say that “thousands of channels are making six figures a year.”
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Giving that Music Video and Music Audio are the most popular segment of Youtube, there is a lot of money to be made for the music labels.
Though Youtube does take a big percentage of the ad revenue (45%). Content owners only get 55% of the ad revenue.
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The biggest bone of contention remains YouTube’s standard revenue-sharing deal. The website typically gives content suppliers 55% of ad dollars that run against their content, and keeps 45%.
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In response to such criticism, YouTube says it fronts enormous infrastructure costs, including bandwidth, video hosting, video players, user analytics, ad serving, geo-blocking, content filtering and other services that power localized sites in 56 countries in 61 languages.
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Some of YouTube’s premium content partners do enjoy better than the standard split, getting to keep up to 65% of ad revenue. According to sources, those include Sony Pictures Television’s Crackle and Vevo, the latter the music-video joint venture majority owned by Sony Music Entertainment and Universal Music Group.
Even with the better terms, Vevo — YouTube’s top content partner — wants to control its own destiny and build its brand outside of YouTube as well, while continuing to harness the site’s tremendous audience. “We never want to move off YouTube. But we want it to be a balanced part of our mix,” said topper Rio Caraeff, in an interview prior to Google’s announcement earlier this month that it has taken a 7% stake in Vevo. The investment could be worth $40 million to $50 million, according to Billboard.
Vevo generates about 4 billion views monthly via its 15,000 YouTube channels, but increasingly more of its videos are watched on other distribution platforms, including Vevo’s mobile app. Up to 35% of Vevo’s North American views now occur apart from YouTube, according to Caraeff. “YouTube is one spoke on our wheel,” he said.
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p.s. When Google purchased Youtube for $1.6 billion, a lot of people said Google overpaid for it. Now, it looks like a bargain. I don't think Google would sell Youtube for $10 billion today.
