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What Are Video Content Services?

Video hosting, or content services allow users from around the world to upload their home videos to an internet site. The host stores the videos, allowing the individuals to embed the videos on a wide variety of other websites, such as blogs. The advent of video sharing websites made it possible for quite a few amateur videographers to make their debut because they did not have to worry about hosting the large files on their own servers, taking up precious storage space.

As other types of cameras made their way onto the market, such as camera phones, and much smaller hand held cameras, video sharing websites quickly took off. One of the larger, more popular video sharing websites, known as YouTube, made a huge impact on the market and quickly set themselves apart from the rest of their competition. YouTube made it incredibly easy for users around the world to capture video of everything from their family’s birthday parties, to world events such as the tsunami’s, earthquakes, and riots that have happened over the last 10 years.

When YouTube Was Started

YouTube was initially created by three former PayPal employees in early 2005, and were based out of San Bruno, California. The website utilizes Adobe Flash video technology to help display a wide variety of content generated by their users, and provide a great way for a new type of bloggers to get their word out. Video blogging has become much more popular with the advent of YouTube, and similar video sharing services.

YouTube’s Financial History And Startup Funding

Since their inception in 2005, YouTube made an impact on some of the larger companies on the internet, with the main company being Google Inc. In late 2006, Google Inc put in an offer to purchase YouTube, LLC for an estimated $1.65 billion. After the deal went through, Google began working on making YouTube a profitable outlet for amateur videographers. The startup was sketchy, and it is even reported to this day that Google is having problems commercializing the service, and earning enough revenue to put it in the black from month to month. It is estimated that YouTube brings in around $250 million per month in revenue for Google Inc.

YouTube’s Traffic History And Statistics

YouTube started out much like other successful web startups, with the service taking a very short time to reach the mainstream. Once users figured out that they could share their own amateur videos, word grew about YouTube and the benefits that it offered. From November of 2005 to July 2006, more than 65,000 new videos were being uploaded to the website every day, and it is reported that, around that time period, YouTube was receiving nearly 100 million video views every day. Today, YouTube controls nearly 43% of the video sharing market, reporting more than 14 billion video views on a daily basis.

YouTube’s Ideal Target Audience And Market Information

According to, YouTube Inc reaches nearly 25% of the internets daily traffic, making it the #3rd top site in the world, and the #4th top site in the United States. It boasts one of the lowest bounce rates on the internet, with only 26% of users viewing a single page before leaving. Alexa reports that there is an even split between male and female viewers, with the largest majority of users being in the age range of 18-24 and 65+. Most users access the website from their home and school computers, with far fewer numbers accessing the website from their work computers.

What YouTube Offers To Their Members

YouTube offers quite a few features that help set them apart from the other various video sharing websites on the internet. One of the main differences between YouTube and other services is their integration with quite a few of the different digital devices that are being manufactured in previous years. The digital devices allow users to quickly capture video and have it synced up with YouTube’s servers without having to hassle with any encoding software. YouTube also makes it incredibly easy for users to get the word out about their new videos, by using FaceBook and Twitter in the YouTube interface.

YouTube’s Competition Analysis And Outlook

When it comes to competition, YouTube has set themselves apart. In coming years, YouTube is estimated to grow much more rapidly than other services because of their incentivised memberships. For users that generate a large number of pageviews, YouTube will pay out a portion of the advertising revenue, which will make video blogging, and posting to YouTube much more lucrative than it has been in previous years. This will help YouTube keep their service one step ahead of their competition.

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