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Is Google-owned YouTube backing out of live streaming video because it’s too expensive? It would appear so, at least according to Michael Learmonth of Silicon Alley Insider. While it’s hard to fathom that any service would require more capital than Google is willing and able to spend, according to Learmonth’s sources, the cost of adding live video would be enormous – a 20 to 25% increase in the company's infrastructure costs if only 10% of YouTube users adopted the service.
Meanwhile, YouTube staying out of the space should be cause for celebration at the live video startups. In a poll we conducted back when YouTube was seemingly poised to launch a live video offering, 69% of our readers indicated that YouTube would likely become the most popular video streaming service. On the other hand, Google staying out of the market also sends a statement that they don’t necessarily think live video is worth an investment at this time.