YouTube vs Netfilx war may decide Google's future

By IVCPOST Staff Reporter

Jul 27, 2013 09:21 AM EDT

While the spotlight lingers on Google's fancy new eyewear-computer hybrid, the multibillion dollar company's more profitable venture faded into the background. Analysts think that no other Google venture was as successful as their 2006 acquisition of one of the Internet's most popular websites - YouTube.

YouTube remained static in its consumer approach despite competitors performing different strategies to boost their hold of the industry share. Netflix, an on-demand video streaming company, recently ventured into content production with the release of its political drama series called "House of Cards." YouTube never did anything drastic in the past few years except changing moving a couple of buttons here and there.

A Wall Street report suggested that a tenth of Google's entire earnings came entirely from YouTube, equal to about US$4 billion to US$5.6 billion every year. Analysts said that Google's return to the most desirable stocks list would depend heavily on YouTube's performance against Netflix.

Tech website AllThingsD said that the free web streaming service was not keeping up with its increasing viewership and its partners' expenses.

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