How much revenue can Google make from online streaming? Let’s look at Google’s revenue from streaming India Premier League first. Even though detailed numbers and revenue information are not open to the public, it is sure that Google spent 10 million dollar for the rights to two years of streaming live. On the other hand, every single advertiser would not spend more than one million dollar a year for their ads. It indicates that Google’s move into streaming Indian Premier League would not be a failed business. Yet it would also not be comparable to the huge streams of revenue from live television broadcasting. Just look at this: the rights to broadcasting ten years of a cricket league games would cost more than 1.2 billion dollar.
Clearly, no matter how online streaming tries to compete with television broadcasting, sports leagues and associations will not give up the already deeply entrenched television broadcasting market. Meanwhile, this market will also be considered the most profitable and most important one for ages to come, at least that’s what it seems for now. However, cricket is not a very popular sport worldwide. So, if Google expands its small profit experiment into popular sports such as soccer and basketball, Google’s online streaming profit potential will be skyrocketing.
Youtube probably won’t make it on time for streaming the world cup. FIFA had already sold out its broadcasting rights to websites all over the world. However, these rights are accompanied by many restrictions, such as that some of the websites can only show videos 90 minutes after the game. The FIFA World Cup probably won’t see an explosion of online sports streaming. Behind every contract between websites and FIFA, FIFA seems to be limiting online streaming because they are able to see the threats online streaming can potential create to the traditional television broadcasting, a media of watching sports that sports fans have stuck to for years.
Youtube is not the only one looking to profit from online streaming. In fact, Microsoft last year already signed a contract to have sports streaming live in its Xbox Live. Xbox 360 player can enjoy the games while chatting with friends. These live videos are actually from the internet because they are not based on cable television signals. Besides big media, companies and networks, there are also individuals who broadcast games live. Today, we are able to watch many games, from basketball to soccer, on . This kind of website is the typical individual’s contribution. Every registered user can share his/her home’s television signal.
It is hard to say whether Youtube or other online media’s online streaming will threaten television broadcasting. The means of watching sports live will probably be revolutionizing and developing. Youtube might get some big bucks from the online streaming industry. However, with the huge foundation television has developed, and the television technology that is advancing year after year, television will probably see no competition in the future.