Google, YouTube and the Internet Video Market
Market definition: Worldwide online video market | Market size: 36 billion unique visitors in 2007 1.
Internet video market experienced dramatic growth from 2006, with User Generated Content (UGC) accounting for 47% of this market. o
News, comedy and music formed the bulk of online viewing across different age categories. o
Ages 18-29 represented majority of the heavy users and content creators, whereas the 30-49 age categories represented the highest potential for growth in the future. o
YouTube gained a significant first mover advantage in this UGC market. However, many competitors like MSN, AOL and Yahoo! Video followed and gained significant market share by 2007. o
Online video advertising, the major source of revenue, was disliked by 31.8% of consumers.
SWOT Analysis of YouTube after its acquisition by Google
No. 1 Player in the internet video market
YouTube hosted more than 60% of all videos watched online in 2006 and held 29% of US multimedia entertainment market.
Economies of scale & scope and realising experience curve. Able to gain greater returns on investment. Strong Brand Equity through commitment to consumers
Reputation for being the most easily accessible site for video sharing. Ditching of ‘pre-roll’ ad format for less intrusive ads like skins and overlays.
YouTube is able to leverage its brand equity to increase and retain viewership. Able to pursue new innovations and target new market segments. Technological and Advertising expertise of Google.
Google’s dominance in the internet search market and its proven advertising model.
Relevant ads are displayed. The company is able to generate high click through rates leading to high revenue.
Intellectual Property issues
Legal charges arose from free posting of copyrighted material. Litigation issues may weaken brand equity. Removal of popular material...
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