Who will be the successor to YouTube, a decade after its debut video?
In the rapidly evolving world of media and entertainment, a seismic shift is underway, with online video emerging as the new kingpin. According to recent statistics, people now spend more time watching online videos than traditional TV, a trend driven primarily by mobile platforms and short-form content.
On average, weekly online video consumption stands at approximately 11 hours and 39 minutes, surpassing the 10 hours and 15 minutes spent on television [1]. Short videos, such as those found on TikTok and Instagram Reels, account for a significant portion of this time, with an average weekly viewing time of around 6 hours and 42 minutes, eclipsing that of longer videos like vlogs [1].
Mobile viewing plays a crucial role in this shift, with internet penetration reaching nearly 69% globally, and the online population growing consistently [1][2]. YouTube, with its 2.53 billion users worldwide (approximately 46% of all internet users), remains a dominant player [3]. The platform's broad content variety and accessibility across 100+ countries contribute to its high engagement time globally. YouTube is also the second most-used search engine, underscoring its role beyond entertainment and into education and information [3].
In the realm of video entertainment platforms like Netflix and Amazon, the traditional distinction between "TV viewing" and online video is becoming increasingly blurred. While Netflix remains a major streaming service, overall time spent specifically on TV and streaming combined is still less than that on online videos [1]. This fragmentation aligns with a trend where consumers are increasingly splitting their media attention across multiple devices and platforms, with a notable decline in traditional TV viewing time in markets like the U.S. [4].
Established broadcasters, however, may hold a potential advantage in delivering quality content and support for video-over-the-internet services. Consumers are willing to pay for online video services that offer greater content variety, less advertising, and better video quality [5].
The rise of online video was not always assured. When YouTube was first launched in 2005, online video's adoption was limited due to a lack of standard for video playback, limited broadband access, and the difficulty in sharing videos online. Google, recognising its potential, purchased YouTube from its ex-PayPal founders for $1.65 billion in stock, just one year after its launch [6].
The first video ever uploaded to YouTube, titled 'Me at the zoo', has since garnered over 19 million hits and 130,000 comments [7]. Today, YouTube boasts around 4 billion views a day [8]. The platform is available in 61 languages [9], and 89% of consumers watch long-form video on mobile devices [10].
In conclusion, online video, particularly mobile-first and short-form content, leads the current video entertainment landscape. Platforms like YouTube and TikTok dominate user engagement, while Netflix and Amazon remain key but face challenges due to fragmented consumption habits and competition from social video platforms [1][2][3][4]. For broadcasters to thrive in this new reality, a relentless focus on consumer optimization will be essential, impacting all elements of their business, from content decision-making to implementing converged operating models and exploiting the data advantage [11].
References:
[1] Statista [2] Internet Live Stats [3] YouTube [4] Nielsen [5] Deloitte [6] TechCrunch [7] YouTube [8] YouTube [9] YouTube [10] Statista [11] Deloitte
Data-and-cloud-computing technologies have played a significant role in the increase and convenience of online video consumption. The rise of cloud-based video streaming platforms like YouTube and TikTok has allowed for the essential storage, distribution, and playback of these videos, contributing to their immense popularity.
Technology advancements, particularly in mobile devices, have fueled the growth of online video consumption, making it accessible anytime, anywhere, and on various platforms, thus democratizing video entertainment.
