Subscribe free to our newsletters via your
. Space Travel News .

10 years later, YouTube is a hit but faces challenges
By Rob Lever
Washington (AFP) April 23, 2015

Ten years after its launch, YouTube has become a household name for online video but faces an array of rivals in the market and lingering questions about its business model.

The first video uploaded April 23, 2005 -- an 18-second clip of co-founder Jawed Karim at the San Diego Zoo -- offered little indication the service would become the leader in Internet video and a key part of the Google empire.

A decade later, YouTube has more than one billion users, with localized service in 75 countries and 61 languages.

Some 300 hours of video are uploaded to YouTube every minute, and "every day people watch hundreds of millions of hours on YouTube and generate billions of views," according to the YouTube statistics page.

Google is reserving its 10-year anniversary celebration for May 10, marking the day the site went public, a spokesman told AFP. But analysts and others were talking about the milestone.

"Everyone in the world knows YouTube, even my mom," said Dan Rayburn, analyst at Frost and Sullivan who also writes a blog about streaming media.

YouTube played a key role in the Arab Spring uprisings and other political movements. It has faced bans in some countries, notably for the distribution of a film about Muhammad which offended some Muslims, and has faced criticism for being used to distribute unauthorized copyrighted content.

- Seeking a business model -

Rayburn said that even though YouTube is immensely popular around the world, it is not clear if it has a real business model.

Google bought YouTube in 2006 for some $1.6 billion in stock -- raising eyebrows about what was then the Internet firm's biggest acquisition -- and now generates considerable revenue, but also has high costs.

"Even today, Google will not say if YouTube is profitable," Rayburn noted. "But 90 percent of analysts say it is not profitable."

Rayburn said that even though YouTube popularized the idea of online video, the videos are mainly "user generated content" that does not attract revenue from users or advertisers.

"To stream premium content like films and television programs, people go to Netflix or Hulu or iTunes," he said.

"YouTube has struggled to find its core business. The vast amount of content on it cannot be monetized."

But a report by Morgan Stanley analyst Benjamin Swinburne earlier this year said YouTube is "a high-growth, valuable asset" for Google with tremendous potential.

The report said YouTube generated some $4.7 billion in revenue in 2014, and that it can do even better by investing in premium content -- such as the paid video channels it recently unveiled and other kinds of subscriptions.

"Given Google's hefty resources, we have been surprised it has not been willing to invest more directly in premium content," the report said.

The research firm Trefis says in a recent report that YouTube represents about three percent of the value of Google but that its importance is growing.

"As the explosive growth in online video ads spending continues, YouTube will be able to leverage its popularity to buoy Google's revenue going forward," Trefis said.

YouTube may be the most recognized name in online video, but it is being challenged on all fronts: Amazon, Hulu and Netflix and Time Warner's HBO for "premium" paid content, and services such as Facebook for free uploads of user videos.

"YouTube has to decide what they want to be," Rayburn told AFP.

"Do they want to be a place where anyone can upload stuff?"

He said Google appears to be happy to leave YouTube as it is, consistent with the philosophy of the California firm.

"I don't think Google wants to monetize all of that," said Rayburn.

"The Google mantra is to help the world and allow anyone to upload anything. They want to keep everything free and open."



Thanks for being here;
We need your help. The SpaceDaily news network continues to grow but revenues have never been harder to maintain.

With the rise of Ad Blockers, and Facebook - our traditional revenue sources via quality network advertising continues to decline. And unlike so many other news sites, we don't have a paywall - with those annoying usernames and passwords.

Our news coverage takes time and effort to publish 365 days a year.

If you find our news sites informative and useful then please consider becoming a regular supporter or for now make a one off contribution.

SpaceDaily Contributor
$5 Billed Once

credit card or paypal
SpaceDaily Monthly Supporter
$5 Billed Monthly

paypal only


Related Links
Satellite-based Internet technologies

Comment on this article via your Facebook, Yahoo, AOL, Hotmail login.

Share this article via these popular social media networks DiggDigg RedditReddit GoogleGoogle

Memory Foam Mattress Review
Newsletters :: SpaceDaily :: SpaceWar :: TerraDaily :: Energy Daily
XML Feeds :: Space News :: Earth News :: War News :: Solar Energy News

Whiteboards of the future: New electronic paper could make inexpensive electronic displays
Washington DC (SPX) Apr 24, 2015
Researchers from the University of Tokyo have revamped an old e-paper concept to make an inexpensive handwriting-enabled e-paper well suited to large displays like whiteboards. They describe the e-paper in the Journal of Applied Physics, from AIP Publishing. Traditional ink and paper is convenient for both reading and writing. In e-paper development the writing feature has generally lagged ... read more

Ariane 5 reaches the launch zone for next heavy-lift mission

Sentinel-2A arrives for Ariane Vega mission

Arianespace Flight VA222: THOR 7 and SICRAL 2 - launch delayed

SpaceX Dragon cargo ship arrives at space station

UAE opens space center to oversee mission to Mars

Robotic Arm Gets Busy on Rock Outcrop

Mars might have liquid water

NASA's Curiosity Rover Making Tracks and Observations

Japan to land first unmanned spacecraft on moon in 2018

Dating the moon-forming impact event with meteorites

Japan to land probe on the moon in 2018

Japan planning moon mission: space agency

Capstone: 2015

NASA's New Horizons Nears Historic Encounter with Pluto

Pluto, now blurry, will become clear with NASA flyby

NASA Extends Campaign for Public to Name Features on Pluto

First exoplanet visible light spectrum

White Dwarf May Have Shredded Passing Planet

Spitzer, OGLE spot planet deep within our galaxy

Spitzer Spots Planet Deep Within Our Galaxy

NASA 3-D Prints First Full-Scale Copper Rocket Engine Part

SpaceX says rocket recovery failure due to throttle valve problem

NASA, Orbital ATK tackle tough booster issues before ground test

Russia Abandons Plans to Build Super-Heavy Carrier Rocket From Scratch

Chinese scientists mull power station in space

China completes second test on new carrier rocket's power system

China's Yutu rover reveals Moon's "complex" geological history

China's Space Laboratory Still Cloaked

Ceres' Bright Spots Come Back Into View

Design begins for ESA's Asteroid Impact Mission

Millimetre-sized stones formed our planet

SwRI team studies meteorites from asteroids to date moon impacts

The content herein, unless otherwise known to be public domain, are Copyright 1995-2014 - Space Media Network. All websites are published in Australia and are solely subject to Australian law and governed by Fair Use principals for news reporting and research purposes. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA news reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement, agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement All images and articles appearing on Space Media Network have been edited or digitally altered in some way. Any requests to remove copyright material will be acted upon in a timely and appropriate manner. Any attempt to extort money from Space Media Network will be ignored and reported to Australian Law Enforcement Agencies as a potential case of financial fraud involving the use of a telephonic carriage device or postal service.