Two Billion Downloads per Day & Almost Profitable !!!

I just read an interesting post on "I, Cringely" about Youtube, and the two things stuck in mind: 2 billion downloads per day and almost profitable.

I couldn't agree more with these statements about why Youtube is still unprofitable:

• Most of the content is crap.
• Distribution costs are still too high.
• The ad model isn’t clear.
• The average video is still less than four minutes long so this is not a medium for story telling in any strict sense.