Analysts and experts now believe that YouTube, which is perhaps the biggest library of online videos on the internet, has a lot of potential to bring in big revenues for Google. This statement comes due to the fact, that the infrastructure costs for such ventures have decreased considerably.

The statement has been released by Citi Investment Research, who after an intense discussion with RampRate, came to the conclusion that, YouTube carries a lot of potential for growth and higher revenues. During the declaration of Google’s Q2 results for the year 2009, Google CFO, Patrick Pichette had stated,

“We’re really pleased both in terms of (YouTube’s) revenue growth, which is really material to YouTube, and… in the not long, too-long-distant future, we actually see a very profitable and good business for us.”

RampRate had previously criticized YouTube for not being able to bring in enough revenues and had stated that the online video website will lose some $470 million in this year. However, there have been certain factors that have changed in the industry, like inexpensive bandwidth, storage and easily available hardware that would be critical to support such huge projects. Due these changes, RampRate has changed its perspective of YouTube and have declared the website as a highly profitable arm of Google.

According to Citi officials,

“The biggest hurdle to profitability is attaining sufficient user and usage volumes, obtaining contracts for content rights, and monetizing against the video content.”

Via NewTeeVee.