Google (GOOG) has finally announced how it will make money on YouTube. According to The Wall Street Journal, the site will begin to run video commercials 15 seconds into the site’s content. The user can close the ad. The paper writes that "YouTube plans to sell these ads only on videos from its content partners, whose original videos include a variety of genres and include professionally produced clips and user-generated content."
The problem with the program is that so much of the content at YouTube is created by nutty users. And, a look at the most popular videos at the webste indicates that these dominate traffic. These include laughing babies, UFO videos, and a rant from Jim Cramer.
GOOG should not count the money yet.
Douglas A. McIntyre