Comments for RWW Predictions: YouTube's New Monetization VS Hulu

RWW Predictions: YouTube's New Monetization VS Hulu

2008-10-20T01:35:46Z

In an effort to monetize YouTube, the video giant will start experimenting with full-length TV shows that include embedded ads. Upcoming video service Hulu offers similar content on its site and is giving Youtube stiff competition. Help us in predicting the following: with this new offering from YouTube, what will Hulu's traffic growth be for November 2008 according to Compete?

]]> Fast Facts

YouTube has brokered a deal with Viacom to run full-length episodes of television shows from CBS
Hulu.com saw a 52.5% month over month increase in traffic in September 2008
According to Reuters, YouTube boasts 330 million users and Hulu just 3.3 million users

Comment from fred wilson on 2008-10-19

2008-10-20T01:54:02Z

Hulu is great and is an amazing success and may be the future of TV in some ways. But the 52.5% month over month gain has probably more to do with SNL, Tina Fey, and Sarah Palin than anything else

Comment from Brennen on 2008-10-19

2008-10-20T02:25:46Z

Hulu has a diehard userbase and is not even close to mainstream...so I think the growth of Hulu will continue to be on pace with what they were last month. As far as Youtube is concerned, they better make their full length episodes as high quality as hulu otherwise I dont know how well it catch on.

Comment from Josh on 2008-10-19

2008-10-20T02:57:37Z

I use a variety of sources for my tv watching. I barely watch TV live anymore.

The one thing that ABC, Hulu, CBS, YouTube and whatever other mainstream sources are out there need to do is test their streaming bandwidth on slower connections. I unfortunately have to use Wi-Max and "third party" episode providers load the content much faster than the studio owned or shared ones.

Very few times do I have to wait for content to load. This is what bothers me about the network supported sites. Generally they all work and have worked well enough, but there are definitely streaming hiccups and I wish they would just get it right. Even YouTube is slowing down.

And can the network sites preload the content. Maybe this isn't possible to get ads to work and such, but getting 2secs then 10 seconds of load time, then repeat is not what I call efficient and user friendly.

Comment from Frank Sinton on 2008-10-19

2008-10-20T04:26:31Z

The question is about monetization, but the voting is about traffic? One doesn't always = the other.

Re: Monetization - we know nothing about what that rev share relationship between YouTube and CBS. Who knows if YouTube is even making money from it? Also, the "core" CBS content - CSI, Survivor, etc. - is not on YouTube yet.

Comment from gabriel bear on 2008-10-19

2008-10-20T05:49:47Z

the underlying issue is content source. YouTube has contributed to the destriction of the networks with user-generated content, and found there was revenue in it.
Now YouTube can buy stickiness from CBS.
What can CBS buy from YouTube? so fr, only bad ideas for reality tv shows.
Who is the winner? Market fragmentation.

Comment from baltbear on 2008-10-19

2008-10-20T05:57:04Z

Who is the financier for Hulu.com?
If there is enough of a war chest, the growth rate, given the starting point, can hold 50% month over month, on one time users for a year.
Until we know what is meant by "traffic" there is no valid metric.
A better question to give a meaningful answer is what resources does hulu have for dealing with rack and pipe?

Comment from anon on 2008-10-20

2008-10-20T07:43:06Z

Hulu is right now US only. So taking whole world youtube data isn't true comparison.

Comment from Michael McGimpsey on 2008-10-20

2008-10-20T07:53:56Z

I just want to see Hulu available outside the US.

Comment from David Thurman on 2008-10-20

2008-10-20T12:04:01Z

I think the demographics for Hulu and YouTube are two different markets as the model for each is different, Google will need to be more Hulu like I think to capture their (Hulu's) share. As for advertising, honestly it's a nuisance for the viewer on both sites and I doubt leads are great, maybe brand awareness improves, but a direct sale is unlikely.

I have used Hulu a couple of times, the quality is impressive on my 17" MacBook. Yet to see decent quality, all the time at YouTube.

Comment from Bertil Hatt on 2008-10-20

2008-10-20T13:54:11Z

Given both sites usual quality, most people who can access both would still prefer Hulu â however, Google has far better data to target ads, and could easily justify a full-length HD 40 minute download with a couple of 30 s. interruption and two banners. Authors' licence would be on top or that â but my point is: on the long term, the winner is the better targeted company with an experience in installing download servers next to your home.

I predict an over 150% the month that Hulu goes international.

Comment from Kieran Hawe on 2008-10-20

2008-10-20T14:31:01Z

Because of the smaller numbers hulu will see substantial growth for the foreseeable future. When Hulu starts to reach 50mm users then we can discuss future growth.