Google Inc. (NASDAQ: GOOGL) has had a fit trying to turn YouTube into a profitable venture large enough to affect the search company’s bottom line. Although as many as half of Americans watch a video on YouTube each month, the division has been a financial failure. Its new 360 degree video product might help YouTube dig itself out of the hole it is in, although its applications are limited.
The 360 degree product is not without its drawbacks. One is that an average creator of videos may have trouble using it, because the process is not simple. According to the blog post that announced the 360 feature:
YouTube supports uploading and playback of 360 degree spherical videos on desktop Chrome and the Android app. In order to upload a 360 degree video file, you’ll need to modify the file with an app or script before uploading.
Most people will not have the necessary hardware:
- Giroptic 360cam
- IC Real Tech Allie
- Kodak SP360
- Ricoh Theta
YouTube has tried to dig itself out from under its financial shortcomings via video advertising and a botched video rental store. The rental feature has run into fierce competition from a number of large companies, led by Amazon.com Inc.’s (NASDAQ: AMZN) Prime offering. YouTube barely promotes its own video on demand feature, which is a sign Google management does not believe it is worth promoting.
Google still has not figured out a way to make YouTube a large enough operation to show up in its quarterly statements. The search company has owned the video company since October 2006. A look back at the $1.65 billion that Google spent on YouTube seems like a bargain, particularly in a world in which many media companies believe video products are critical to their futures. However, after eight years, that bargain has not paid any dividends for Google.
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