YouTube to sell games and movies
Friday, 10 October 2008
Video hosting and distribution site YouTube is expanding, saying it will begin to sell music and movies while experimenting with new advertising techniques to increase revenue.
The site will begin to start building the foundations of an e-commerce service, including the sales of music, film, television shows, games, books and concert tickets.
YouTube, acquired by Google in 2006, will work with other internet giants such as Apple’s iTunes store and Amazon by linking to each store based on what content each user views. The stores will share revenue with YouTube.
Questions have been raised by shareholders over how little revenue YouTube has actually generated, with research firm Piper Jaffray estimating the site will earn just $200 million next year. That’s a drop in ocean, considering Google paid $US27 billion for the site.
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