YouTube may not have brought revenues given its global reach earlier, but the team has definitely pushed the accelerator. EVP Universal Music Group’s eLab Rio Caraeff commented that the online video service is bringing in tens of millions of dollars. According to reports, UMG may very well bag revenues worth $100 million from streaming videos in the current year. Of course it includes other services like MTV, MySpace, but YouTube will definitely have a larger share. He stated:
(YouTube) is not like radio, where it’s just promotional. It’s a revenue stream, a commercial business. It’s growing tremendously. It’s up almost 80 percent for us year-over-year in the U.S. in terms of our revenue from this category.
It’s really coming to fruition I think in part due to YouTube’s recent focus on monetization and really trying to drive revenue around premium content more so than they have in the history of their short existence. They have finally turned their spotlight on ‘How do we turn this into a business?’ And that’s benefiting the entire ecosystem of content owners as well.