(Wall Street Journal) Google Inc. nurtured YouTube into a cultural phenomenon, attracting more than one billion users each month. Still, YouTube hasn't become a profitable business.
The online-video unit posted revenue of about $4 billion in 2014, up from $3 billion a year earlier, according to two people familiar with its financials, as advertiser-friendly moves enticed some big brands to spend more. But while YouTube accounted for about 6% of Google's overall sales last year, it didn't contribute to earnings. After paying for content, and the equipment to deliver speedy videos, YouTube's bottom line is "roughly break-even," according to a person with knowledge of the figure.
By comparison, Facebook Inc. generated more than $12 billion in revenue, and nearly $3 billion in profit, from its 1.3 billion users last year.
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