Google, YouTube and the Internet Video Market
Market definition: Worldwide online video market | Market size: 36 billion unique visitors in 2007 1. Industry trends
o 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
Strengths Evidence Implication

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 accessib...

-29 -49 1 175 18 2 2006 2007 2011 29 3 30 31.8 36 4 40 43 47 5 56 60 abil abl above-ment access account acquisit across activ ad advanc advantag advertis aesthet affect age allianc allow also among analysi annoy aol aros ascertain attract away base beta better bigger billion brand buffer bulk capit categori chanc channel charg click come comedi comment commit compani competit competitor compromis comput con conclus constant constraint consum content copyright core cost coupl creat creator current curv custom debacl decad decreas definit demand descript differ disadvantag dislik display dissatisfi ditch diverg diversif domin downsiz dramat drive drop due eas easili economi element emerg emin enhanc ensur enter entertain equiti estim evalu evid experi experienc expertis fee filter first fix follow foothold form format free friend full furthermor futur gain generat googl greater group growth heavi held help high higher highest host howev hulu imag implic improv increas industri infrastructur initi innov integr intellectu interest interfac internet intrus invest issu larg larger largest launch lead leader least legal length less leverag like limelight litig look major mani market materi may mean mention menus might million model month movement mover msn multimedia music myspac need network new news next non non-ugc normal o offer onlin opportun overlay pace partnership paus penetr percentag personalis plan play player pleas popular posit possibl post potenti pre pre-emin pre-rol prefer premium preview primari pro problem procur properti proven provid pursu put qualiti rate realis recommend reduc relev reli remain remov renov repres reput retain retent return revamp revenu roll scale scope search segment seiz share short shorter signific simultan site size skin sleek social solut sourc start strateg strength strong success suggest suit support swot tag tap target technolog term test text threat thumbnail thus toward trend ugc ui unclutt uniqu us use user usp video view viewer viewership visitor watch weak weaken websit wherea worldwid yahoo year youtub