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Google/Youtube problems

WIth my limited understanding of such topics I've long been confused by
something I read a couple of years back - in an Arbor report perhaps - to
the effect that by being the originator of so much traffic, and as they
built out their own network, Google were making money on transit.

Can anyone elaborate or refute?

On Mon, Nov 19, 2012 at 11:55 AM, joel jaeggli <joelja at bogus.com> wrote:

> On 11/19/12 5:59 AM, Saku Ytti wrote:
>> What I'm trying to say, I can't see youtube generating anywhere nearly
>> enough revenue who shift 10% (or more) of Internet. And to explain this
>> conundrum to myself, I've speculated accounting magic (which I'd frown
>> upon) and leveraging market position to get free capacity (which is ok, I'd
>> do the same, had I the leverage)
> Or there's a simpler explanation. Which is that it makes money either
> directly or as part of a salubrious interaction with other google
> properties.
> They had about 2.5Billion left over for their trouble in the quarter
> ending 9/30 which isn't too shabby on a gross of 14 billion.

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