Google’s problem with YouTube is even bigger than many thought.

More than 97% of YouTube’s videos are deadweight – videos that the company can’t put ads on.

According to Silicon Alley Insider’s Michael Learmonth:

We know Google’s (GOOG) YouTube is a tough sell for advertisers. But video site’s sales team may be having an even tougher time than recent reports suggest.

YouTube sales manager Brian Cusack says YouTube is able to sell ads against “less than 3%” of the total videos on the site. That shaves more than a point off the 4% floated by the WSJ two weeks ago, which cited “one person familiar with the matter.”

As pressure increases for Google to make money with YouTube, videos that are deadweight financially or, worse, billion dollar legal liabilities are likely to make it difficult for the company to compete against sites, like Hulu, that can make money on all of their videos.