I just realized that their site (much like Google) is devoid of ads except one banner at the top of the video pages and one on the side of other pages. No WAY they’re making money off advertising.
Did they get funded by a VC for megabucks (no way you could run such a bandwidth- and space-intensive site without tons of capital to start with), with the business plan of:
- Set up free video serving site
- Get the rights to terabytes of video for free
Not only do they not advertise on their own site, they let all of their videos be posted willy-nilly around the 'net for free with nothing but a little watermark.
I think I’ve read (in Wired) that YouTube sells clips to VH1 who has a clip show. Or VH1 has a clip show based on YouTube videos (not sure, don’t have VH1).
But there’s something I’m missing here, bigtime.