Google's YouTube could be a $20 billion business within seven years, according to a research note from Morgan Stanley.
Based on the site's current share of the video advertising market, analysts at the firm estimated Wednesday that YouTube will do $4 billion in gross revenue and $711 million in operating income this year alone.
With YouTube's continuing expansion into the video advertising space, the firm predicts that by 2020 revenue will hit $20 billion and operating income will come in at as much as $5 billion.
But the site, which boasts an average of 1 billion users per month, isn't just relying on advertising to drive its revenue up.The company is experimenting with NEW ways to cash in on content and compete with more premium streaming sites like Netflix and Amazon.
YouTube revealed earlier this month a subscription service that allows 30 of its partners to charge for content on YouTube's site.
Subscriptions start at 99 cents per month, but most of the pilot channels that have launched cost $2.99.
(Read More: YouTube Starts Paid Subscription Service )