YouTube Looks to Paid Downloads to Turn Profit

When Google acquired YouTube, a popular video share site, user submitted content and the idea of online communities and networks was still taking root on the interwebs. The internet was transforming from a passive medium to an interactive one where normal users like you and I could make an impact.

Two years later Google has yet to make YouTube turn a profit, or even establish a viable source of revenue. Their latest idea is to allow free streaming (like they currently do) but charge for downloads.



Obviously this is a work in progress, and YouTube is already behind the curve. As a matter of observation they seem to have become the proverbial whipping boy of the industry; whereas, Hulu is a bit of a golden child.

Websites like Hulu have managed to give the people what they want (professional movies and TV) and actually make money. Studios and networks are flocking to the little company that could and leaving YouTube in the dust; making it very difficult for YouTube to cut deals and legitimately display copyrighted material, but not for lack of trying.

Although the idea of paying for video downloads sounds like a great idea (it works for iTunes right?) I'm not sure I want to download David after Dentist, let alone pay for it. Besides, anyone that actually wants to copy video from YouTube knows the exact kind of software they need to do it, and it's probably freeware.

A point many users address in the blog YouTube posted announcing the test.

I have to at least give YouTube a "B" for trying. Internet sites like YouTube can't rely on display advertising in this economy anymore. They need to figure out a way to make money from the users, which is a scary prospect considering the philosophy the site was originally built upon.

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