Right, it’s not directly sending traffic, but each time they show a YouTube result, they’re losing the eyeballs that could be viewing traffic on Yahoo!’s properties.

Bandwidth is probably not even the last thing on their mind since they have so much of it. It’s more about the eyeballs and the ad revenue.

That’s ad revenue that they could be keeping by sending traffic to their own properties.

Note, I have never seen Yahoo! Video come up in the Google search results. Ironic? Not even remotely (in my opinion).

It’d be interesting though to see stats though on what people actually click on – the “Play Video” button is obvious and attractive, however it is lower on the page then the hyperlink to Google, and may seem jarring in search results.