On November 20, 2009
How Will Chrome OS Make Money? The Secret Is YouTube
Yesterday Google showed off its forthcoming Chrome OS, leaving many to wonder how exactly the company will monetize it. The answer: it won’t. Since Google derives 97% of its revenue from online ads, it simply wants you using a computer that is always online. Specifically, it wants you on a computer that is one click away from YouTube, which has been flourishing this quarter into a bona fide revenue engine. Why YouTube? Textual ads generate chump change compared to video advertising. And since Chrome OS machines won’t store any data locally — no music, no movies, no photos, no games — users will go to the Web to be entertained even more than regular PC users. Google is working hard to make sure…
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