Revenue for digital video services like Netflix and Hulu has taken off in the last decade: It started picking up in 2007 with the introduction of the modern smartphone, but it started really taking off in 2010, the same year Apple introduced the iPad. The beneficiaries of those new device categories, however, were the big distributors of that digital content — Netflix, YouTube, and Hulu.
Based on company filings charted for us by BI Intelligence, YouTube pocketed an estimated $US5 billion in digital video revenue in 2013 — about 31% more than the previous year — while Netflix made an estimated $US4.4 billion (a 17% jump from 2012) and Hulu made around $US1 billion (a 30% jump from 2012) in digital video revenue.
Across the board, digital video companies and platforms can expect to see more of that revenue: Web video services — particularly YouTube’s, since it’s largely free — are significant contributors to the “cord-cutter” movement that’s said to truly take hold in a decade from now, where people rely less on cable TV, or abandon it altogether, replacing it with internet-enabled devices and services.
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