The growth of YouTube business in recent past

The history of YouTube began when PayPal employees created a video-sharing website where users could upload, share and view content. During the summer of 2006, YouTube was one of the fastest growing sites on the World Wide Web, hosting more than 65,000 new video uploads. The site delivered an average of 100 million video views per day in July. It was ranked the fifth-most-popular website on Alexa, far out-pacing even MySpace’s rate of growth.

The social media marketing company averaged nearly 20 million visitors per month according to Nielsen/NetRatings, with around 44% female and 56% male visitors. The 12- to 17-year-old age group was dominant. YouTube’s pre-eminence in the online market was substantial. According to the website Hitwise.com, YouTube commanded up to 64% of the UK online video market. YouTube entered into a marketing and advertising partnership with NBC in June 2006.

On October 9, 2006, it was announced that the company would be purchased by Google for US$1.65 billion in stock, which was completed on November 13. At that time it was Google’s second-largest acquisition. The agreement between Google and YouTube came after YouTube presented three agreements with media companies in an attempt to avoid copyright-infringement lawsuits. YouTube planned to continue operating independently, with its co-founders and 67 employees working within Google.

Google’s February 7, 2007 SEC filing revealed the breakdown of profits for YouTube’s investors after the sale to Google. In 2010, Chad Hurley’s profit was more than $395 million while Steve Chen’s profit was more than $326 million.

With the help of the online video service, the tech giant’s revenue increased 11 percent to $17.73 billion, pushing shares up 3.1 percent to $601.78 at Thursday’s close of trading.

Just a few months ago, YouTube was said to be unprofitable in spite of generating $4 billion in revenue last year. But Google’s earnings call made the case that YouTube is a key driver for the company’s growth. CFO Ruth Porat cited “significant growth in YouTube revenues” and the benefits of TrueView, a type of video advertisement in which advertisers pay when viewers choose to watch an advertisement, not when an advertisement is viewed.

The fastest-growing content category in India is beauty and fashion, which boasted 138% year-over-year growth in terms of watch time, followed by comedy and entertainment (100% year-over-year growth), and indie musicians (92%). Additionally, millions of these hours are being watched offline, YouTube said. In India, 75% of users say they visit YouTube as their first stop for video, 63% use YouTube to watch music videos, and 40% rely on the platform as an educational resource. No doubt it is the fastest growing social media marketing company in India.

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