San Bruno, California–The internet’s most popular video-sharing site is safe for now. By significantly increasing its user-base, its parent company won’t pull the plug just yet, as it is doing with other free services it owns.
Yesterday, the company’s site reached 1 billion monthly users, a figure which has been obtained by the social site, Facebook. The benchmark growth is being attributed largely to the ubiquity of smartphones.
“Nearly one out of every two people on the Internet visits YouTube. Tens of thousands of partners have created channels that have found and built businesses for passionate, engaged audiences,” the company said, in a statement.
The video-sharing site was created by three former employees of one of the most used e-commerce payment processors, PayPal, in February of 2005. A year later, Google acquired the site for $1.76 billion when the video-sharing platform had just 30 million worldwide users.
That investment turned out to be a lucrative one as advertising revenue has skyrocketed. By reaching such a milestone, it’s unlikely Google will shutter the site, a fate befalling its Reader service with an official power-down date of July 1, 2013.
The fact of the matter is, Google and other megacorporations don’t stand idly by, pouring resources into products which do not perform. While some are rebranded or pushed in another direction, but the majority are cast aside.
The reason for the shut-off of Google reader is declining use and the company’s commitment to put more effort into fewer products, a business model which has served Apple well.
Last May, YouTube recorded 800 million monthly users and has an Alexa rank of 3. In 2008, Forbes predicted the company would take-in $200 million in revenue. Today, Google says little about the video-sharing site’s revenue, which is believed to be about $1.5 to $2 billion.