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Google’s (GOOGL) YouTube business is probably at least as profitable as Netflix (NFLX), according to a report Monday from Generator Research. The report estimates YouTube generated about $5 billion in ad revenue in 2013, or 9% of Google’s total sales for the year. The popular online video site attracts more than 1 billion unique visitors each month, or half of all Internet users worldwide. YouTube’s revenue is rising because of three factors: growth in unique viewers, increase in the number of streaming ads served, and increase in the average cost of each ad, Generator analyst Andrew Sheehy said in a summary of the report. “When viewed on a P&L basis, we think that YouTube is a profitable business for Google: Not only does the company not have to pay content acquisition costs for the vast majority of its content, but our analysis is that the streaming costs are no… Scalper1 News
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