Ronnie05's Blog

YouTube: Google’s Future Growth Engine

Posted in Internet and Search by Manas Ganguly on May 25, 2011 celebrated its 6th Birthday with some style, panache and big numbers. YouTube was founded on Valentines Day (Feb 14), 2005. was launched in May 2005. Google acquired YouTube in 2006 From the novelty of self-broadcasting to being a central tool used by protesters across North Africa and the Middle East. The site shared some of its big numbers that emphasize and underscore its overwhelming dominance in the online video streaming space.

Heres the cake and the icing:
1. YouTube daily global views are 3 billion on a daily basis which put in context is half the population on earth. To put that in some perspective: comScoresaid last week that the total U.S. Internet audience engaged in roughly 5 billion viewing sessions for the entire month of April 2011. According to comScore’s Video Metrix, YouTube ranked as the top online video content property in April (U.S. only) with 142.7 million unique viewers, followed by VEVO with 55.2 million viewers, Yahoo Sites with 53.2 million viewers and Facebook with 46.7 million viewers. That statisctic translates to every U.S. resident watching at least nine videos a day
2. Viewership has registered a 50% increase over the previous year.
3. 48 hours of video uploaded to the site every single minute. The company names three main reasons for this growth, citing an increase in live streaming events, longer upload times and also faster upload processing times. Think DLF IPL?
4. The upload statistic represents a 37-percent increase over the last six months and a 100-percent increase from last year.

While YouTube hasn’t made any profits for Google yet, Citibank forecasts YouTube revenues to surpass $1billion by 2012. YouTube is the masthead of Google’s other properties beyond search, which Include display advertising, video advertising (YouTube), mobile search, and local. YouTube and local advertising. According to his estimates, YouTube’s gross revenues hit $825 million in 2010, and will reach $1.3 billion in 2011 and $1.7 billion in 2012. After stripping out revenue share, the net revenue contribution Google will get to keep from YouTube is estimated to go from $544 million last year to $1.1 billion in 2012.

YouTube has been catalyst of Google’s evolution from a search major to Media Company. In the current context it is unlikely that YouTube’s growth will see any major roadblock for the next 5 years during which time it will continue to disrupt media space and video advertising.

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