YouTube is better known than Hulu, it’s been around longer and it boasts almost 14 times more users, but Hulu is on track to rake in just as much revenue as its forerunner in 2009.
Arash Amel, an analyst with media research company Screen Digest, said both video sites are expected to earn $180 million in 2009.
Google’s $1.65 billion bet on YouTube in October 2006 seems more and more shaky these days.
According to Nielsen, YouTube claimed 83 million unique visitors in September, compared to Hulu’s six million.
YouTube is expected to make approximately $100 million in ad revenue this year, while Hulu is expected to make about $70 million.
What makes Hulu’s rise to financial success even more stunning is the fact that it has yet to branch out into countries outside of the U.S., while YouTube already has strong presence in other countries.
YouTube takes about half of its ad revenue in the U.S., while the rest comes from its international markets.
Hulu’s main advantage over YouTube is an important one: quality of content.
YouTube is the place to go for amateur user-generated content, while Hulu has etched out its place as the venue for viewing professionally created content.
Hulu’s content is more attractive to advertisers, which bodes well for its future. YouTube, on the other hand, has always been in this uphill battle against its very own strength.
The types of advertising have been evolving in subtle ways at Hulu, where 60-second pre-roll ads are now sometimes featured. If users choose to view these longer ads at the beginning of a video, they will be able to view the content without interruptions.
YouTube, in an apparent move to close this gap between itself and the more polished Hulu, signed deals with MGM and FremantleMedia on November 10.
Sources:
http://www.webpronews.com/topnews/2008/11/17/hulu-ad-revenue-to-rival-youtube
http://www.cbc.ca/arts/story/2008/11/17/tech-youtube.html
http://www.cbc.ca/arts/media/story/2008/11/10/youtube-deals.html?ref=rss&loomia_si=t0:a16:g12:r1:c0.363698:b19687447
http://www.marketingvox.com/in-2009-hulu-ad-spend-to-nip-youtubes-heels-042003/
http://www.iht.com/articles/2008/11/10/business/10mgm.php
Jason Hahn
e: jhahn221@gmail.com
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