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Can Going Classy Make YouTube Profitable for Google?


YouTube's planned exhibit at the Guggenheim helps the company's effort to attract top advertisers.

Last May, YouTube hit a record: 14.6 billion videos viewed in one month.

You'd think, with all that traffic, the site would be profitable for its parent-company, Google (GOOG). But, it's not.

Analysts say that in order to turn things around, YouTube will need to attract better advertisers. Currently the site trails behind Netflix (NFLX) and Hulu in offering high-quality content that attracts the most lucrative ad deals.

To close the gap, YouTube is trying to get classier. This October, YouTube is partnering with Hewlett-Packard (HPQ) and Intel (INTC) to hold an exhibit at the Guggenheim in New York City where top videos will be on display.

But given our current culture's obsession with mash-ups, borrowed art, and low-brow viral videos, is going classy really the way to go?

Click the video below for Josh Lipton's investigation.

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