Competitor: YouTube's 2008 revenues will reach maybe $90 million
Last summer, VideoEgg CEO Matt Sanchez complained that Google ripped off his company's innovation when YouTube began selling ads that popped up along the bottom margin of videos while they played. Now Sanchez doesn't so much care. YouTube, he told NewTeeVee, is only going to earn revenues of about $70 million to $90 million in 2008. InVideo ads — the kind Sanchez claimed Google ripped off — will be an even smaller part of the pie. Bear Stearns estimated YouTube revenues will reach $103 million this year, $22.6 million from InVideo ads. The low numbers have Sanchez suddenly bearish on online video. He told NewTeeVee that if YouTube can't pull significant revenues, the market definitely isn't big enough for VideoEgg's aspirations. He's steering the company's resources into brokering advertising for casual Flash games instead, a market which is about as underhyped as online video was in 2007.