YouTube is no Money Maker for Google

Google CEO Eric Schmidt has told us that YouTube is still not making them any money.

In an interview with The New Yorker, Schmidt said that it "seemed obvious" that they should be able to generate "significant amounts of money" from YouTube. But they've still not yet accomplished this. However, he remains optimistic saying that the site could lead to "the creation of a whole new industry," and that his optimism was based on two facts: "We know people are watching it" and "We have the luxury of time to invest."

Just last month, Google introduced a new YouTube advertising program called Buzz Targeting in an attempt to monetize YouTube.

The company is hoping it can use the site to expand into other types of web-based ads, including those which exploit the rapidly expanding popularity of internet video.

YouTube is visited by 129 million people each month so you would assume it certainly has the potential to earn revenue.

Making YouTube profitable was one of Google's biggest goals this year and seeing as though we are already in June this may be one goal that just falls to the wayside.

Posted by Courtney Mills at 4:49 AM GMT