Post by Slim K team on Nov 18, 2008 15:11:34 GMT -8
Hulu is Catching Up With YouTube — Fast
By Meghan Keane November 17, 2008 | 10:17:08 AMCategories: Advertising, Hulu, YouTube
Network television hub Hulu is on track to meet the advertising earnings of video behemoth YouTube by next year, barely a year after its launch.
YouTube had 83 million unique viewers in September, compared to Hulu's relatively tame 6 million. But Hulu's revenues are rising fast, and set to reach YouTube's surprisingly quickly, according to the Financial Times:
Neither company breaks out its advertising revenues but Arash Amel, analyst at Screen Digest, forecasts that in 2008 YouTube will generate about $100m in the US, compared with about $70m at Hulu. Next year both sites will generate about $180m in the US, he says. YouTube currently earns around half of its revenues in the US, while Hulu has not yet launched internationally.
YouTube has been hard at work rolling out advertising solutions to monetize its overwhelming popularity, but the video behemoth has been inhibited by the quality of its content. Pre- and post-roll ads, video search advertising and Click-to-buy links are new ways to bring in revenue for YouTube, but user generated content, which is a large segment of the site's offerings, does not attract the kind of large scale campaigns brand advertisers like.
Hulu, which has partnerships with many major networks to stream their premium shows online, has the kind of inventory that large brands are looking for. YouTube has a channel devoted to CBS content and now streams video from MGM's back catalogue, but they need to make progress in that area to competively push for those coveted brand dollars. Oh yeah, and to prove that Google didn't overpay when they purchased the site for $1.65 billion in 2006.
By Meghan Keane November 17, 2008 | 10:17:08 AMCategories: Advertising, Hulu, YouTube
Network television hub Hulu is on track to meet the advertising earnings of video behemoth YouTube by next year, barely a year after its launch.
YouTube had 83 million unique viewers in September, compared to Hulu's relatively tame 6 million. But Hulu's revenues are rising fast, and set to reach YouTube's surprisingly quickly, according to the Financial Times:
Neither company breaks out its advertising revenues but Arash Amel, analyst at Screen Digest, forecasts that in 2008 YouTube will generate about $100m in the US, compared with about $70m at Hulu. Next year both sites will generate about $180m in the US, he says. YouTube currently earns around half of its revenues in the US, while Hulu has not yet launched internationally.
YouTube has been hard at work rolling out advertising solutions to monetize its overwhelming popularity, but the video behemoth has been inhibited by the quality of its content. Pre- and post-roll ads, video search advertising and Click-to-buy links are new ways to bring in revenue for YouTube, but user generated content, which is a large segment of the site's offerings, does not attract the kind of large scale campaigns brand advertisers like.
Hulu, which has partnerships with many major networks to stream their premium shows online, has the kind of inventory that large brands are looking for. YouTube has a channel devoted to CBS content and now streams video from MGM's back catalogue, but they need to make progress in that area to competively push for those coveted brand dollars. Oh yeah, and to prove that Google didn't overpay when they purchased the site for $1.65 billion in 2006.