Cramer: LET’S SPEAK ABOUT A QUESTION THAT AGAIN, I’M TRYING ADDRESS THE QUESTIONS HOLDING THE STOCK DOWN. YOU HAVE TREMENDOUS DOWNLOADS IN YOUTUBE ARE EXTRAORDINARY.
Schmidt: IT’S UP TO 1.3 — MILLION MINUTES EVERY TEN MINUTES OF UPLOAD? IN OTHER WORDS EVERY MINUTE WE ARE PUTTING THAT MANY VIDEOS IN. IT’S UNBELIEVABLE.
Cramer: BUT AT THE SAME TIME, WHAT ADVERTISER WANTS TO PUT A 30 SECOND ADVERTISEMENT IN YOUTUBE, WHO WANTS TO LOOK AT THAT VERSUS THE ADVERTISEMENTS WE ARE DOING FOR THE OLYMPICS WHICH ARE JUST GIGANTIC 1.7 BILLION IN REVENUE. ISN’T IT TRUE THAT PEOPLE DON’T LIKE ADS ON YOUTUBE?Schmidt: WE HAVE NOT FIGURED THAT MODEL OUT YET.YOU’RE COMPARING A 50-YEAR-OLD MATURE MODEL THAT WORKS REALLY WELL ONCE EVERY FOUR YEARS IN THE OLYMPICS, VERSUS SOMETHING THAT’S JUST STARTING. WE HAVE LOTS OF TRAFFIC.
Cramer: SO YOU ARE JUST SAYING SOMEONE WILL JUST FIGURE IT OUT.
Schmidt: HOPING IT’S GOING TO BE US THAT FIGURES IT OUT. WE’RE TRYING DIFFERENT THINGS WE TRIED PRE-ROLL AND POST-ROLL NOT ANYONE ONE IS REALLY, WE HAVE A COUPLE NEW ONES COMING OUT.
Cramer: YOU’RE MAKING SO MUCH MONEY YOU DON’T HAVE TO WORRY ABOUT IT. IT ISN’T LIKE IT IS GOING TO HIT YOUR BOTTOM LINE.
Schmidt: IT DOESN’T HIT OUR BOTTOM LINE.
Cramer: SOME ARE SAYING IT WILL.
Schmidt: BUT EVENTUALLY WE’D LIKE TO MAKE MONEY OUT OF IT, BUT IF WE DON’T, THE FACT THAT SO MANY PEOPLE COME TOYOUTUBE, MEANS THEY ULTIMATELY GOOGLE AND DO GOOGLE SEARCHES AND CLICK ON ADS. SO DON’T BE TOO WORRIED ABOUT ALL THAT TRAFFIC GOING TO YOUTUBE. I’D BE WORRIED IF PEOPLE WEREN’T USING YOUTUBE. SINCE IT IS AN ENORMOUS SUCCESS GLOBALLY WE KNOW WE WILL BENEFIT.
Videos of the exchange are here.
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