YouTube to turn profit this year

Last year Credit Suisse reported that Google-owned video sharing site YouTube was set to lose as much as USD$470m for the year with bandwidth costs coming in at USD$1m per day, which makes last week's statements from Google head honcho Eric Schmidt that the site will turn a profit this year all the more remarkable.

Questioned as to whether they have finally found a viable business model for the site, Schmidt said:

"We've figured it out. Nowadays, just about every advertising campaign involves YouTube as part of the solution. That's a big deal."

Making the site a key location for mass market consumer brands has been the key, with home page real estate in the fourth quarter having "nearly sold out" according to Google.