Interesting article about the true costs of “free” on the internet… Mega-sites like YouTube and Facebook face huge operating costs and they are not recouping those costs using the advertising model.  Though these businesses are immensely popular, they are not generating profits.

YouTube, according to Credit Suisse, will lose $470 million this year.  

But the cost of bandwidth, content licensing, ad-revenue shares, hardware storage, sales and marketing and other expenses will total about $711 million, putting YouTube squarely in the red, the Credit Suisse report estimated. 

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