In the world of Web video, there’s YouTube and then there’s everyone else.
An analysis of comScore Video Metrix data from the past year shows that YouTube nearly doubled in size over the past year…and the rest of the U.S. video market declined.
At current rates, YouTube should pass all other U.S. video sites by the end of 2008.
YouTube’s growing dominance has come while the TV networks have flooded the Web with free, ad-supported TV–and the TV networks still can’t keep up.
A year ago, YouTube was serving 2.3 billion videos a month, and had 26% of the total U.S. online video marketplace. A year later, YouTube is serving nearly 5 billion videos a month and has 44% of the market.
Meanwhile, the rest of the video market–everything from the rest of Google, MySpace, ABC.com, Veoh, Dailymotion and Viacom Digital–declined from 6.8 billion monthly views a year ago to 6.4 billion in July. And that includes Hulu.com, which started at nothing in March and grew to more than 100 million monthly views in four months.
ComScore’s is a conservative estimate. Nielsen, which strips out advertising and adult video, had YouTube passing the rest of the video market earlier this spring, and puts its U.S. market share in July at 58%. While comScore and Nielsen disagree on the total size of the video market, they give YouTube credit for 5 billion videos.
What does this mean? Financially, not much. Google is making money from a tiny fraction of YouTube’s videos, while sites like ABC.com or Hulu.com earn advertising revenue from every video streamed. Until Google figures out the advertising bit, or finds a way to make peace with the studios, the gaudy market share figures are meaningful for bragging rights, and little else. We estimate Hulu, for example, could make close to $90 million in revenue its first year–close to half of the $200 million YouTube is expected to make this year, with a tiny fraction of the views.
In the end, with all the forces in competition for the living room, dominance in Web video is a little beside the point. The real battle for video share, or consumer screen time, is with TV. And on that, the Web has a long way to go. ComScore says 75% of Internet users watched an average of four hours (235 minutes) of Web video over the course of the month. Meanwhile, the average American watches 127 hours of TV a month, according to Nielsen.
YouTube Crackdown On Sexy Videos Sweeps Up Illumistream
YouTube Payola: Is Anyone Paying For Views
Experts Agree: YouTube Dominates. But By How Much?
YouTube Finally Figures Out How To Make Money: Big Ads On Its Homepage
YouTube Exec: We’re Selling Advertising Against ‘Less Than 3%’ Of Our Videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.