
YouTube’s traffic machine may finally be turning into a cash machine.
For the first time, there are signs that YouTube is driving significant revenue for itself and some of the video site’s partners. In an interview with CNET News this week, Rio Caraeff, executive vice president of Universal Music Group’s eLabs, said the largest of the top recording companies is bringing in “tens of millions of dollars” from YouTube.
“(YouTube) is not like radio, where it’s just promotional,” said Caraeff, who heads up Universal’s digital group. “It’s a revenue stream, a commercial business. It’s growing tremendously. It’s up almost 80 percent for us year-over-year in the U.S. in terms of our revenue from this category.”
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