As YouTube Video Streams Top One Billion A Day, Service Flounders Financially

New data from TechCrunch indicates that Google’s  (GOOG) YouTube has reached one billion streams served per day.

The numbers probably mean that the service is losing much more than analysts figure, a number that ranges as high as $300 million a year. It also mean that Google’s challenge to create sales from the service faces larger hurdles than imagined.

Having access to one billion of anything on the internet should open a door to significant revenue. YouTube’s problem seems to be very simple and, nearly impossible to solve. The quality of most of the video is so poor that most marketers do not want their messages next to junk.

Douglas A. McIntyre