Your Tube, Whose Dime?

Dan Frommer writes:

... Startup of the moment YouTube, which garnered 12.9 million unique visitors in March, doesn't care what viewers watch, as long as they keep tuning in. Making money is another matter: The site, which has raised $11.5 million in venture capital in the last year, didn't see a penny in revenue until March, when they cautiously began selling ads. Meanwhile the site's bandwidth costs, which increase every time a visitor clicks on a video, may be approaching $1 million a month--much of which goes to provider Limelight Networks.  ¶  Internet optimists predict that online video, long-rumored to be the next big thing, is finally taking off: IDC estimates that video generated $230 million in revenue in 2005 but will jump to $1.7 billion by 2010. In the meantime, the best play in Internet video may not be the companies that show off the clips, but the ones who deliver them to users' PCs. ...

Link:  Forbes.

Also see, Is there a long term synergy between advertisers and YouTube? (link:  Open Gardens)  and Five Months After Its Debut, YouTube Is a Star (link:  Washington Post).  --Dennis