Blog Post

MySpaceTV Eats Into YouTube’s Market Share

Fox Interactive Media took a chunk out of Google and the rest of the competition’s U.S. video views in May, according to comScore. FIM’s major video property is MySpaceTV, while YouTube accounts for 98 percent of Google’s video views.

YouTube usually just grows its share of the pie every month, but in May it dropped to 34.8 percent of video views from 37.9 percent in April. Most every other site on the top 10 dropped as well, but FIM (in second place, as usual) had 6.4 percent of video views, up from 5.1 percent in April.

We’ve asked MySpace to comment on whether they saw similar growth internally. Since these comScore reports are significantly delayed, these numbers are from before MySpaceTV got a major overhaul along with the rest of MySpace in a June redesign.

comScore said total video views grew to 12 billion this month, up 45 percent from a year ago and recovering nicely from a dip in April. And Hulu made its debut on the top 10 list, coming in last place with 88.2 million video views, and falling just short of the video viewer top 10 with 6.8 million viewers. Hulu had already broken into Nielsen’s top 10 video sites in April.

4 Responses to “MySpaceTV Eats Into YouTube’s Market Share”

  1. crazyrates

    $15-$30 CPM for user generated content is ridiculously high. YouTube CPMs will be closer to $5. Maybe there will be local video marketplaces with lead applications earning additional revenue that will create eCPMs up to $10-12.

    But the cost of serving that video (today rumored at over $30M per month) plus all the people to run YouTube are included, YouTube is years away from being profitable. Distribution costs must plummet. An ad model must be found, and the Google like margins found in SEM will be a thing of the past. And if it can get profitable, it may take a dozen years from there to earn back $1.7+B.

    Main reason…the content and quality is horrible.

  2. And that is just for the US based viewers of Youtube content. The rest of the world probably amounts to more than twice the Youtube usage of just the USA. So overall monetization potential for Google with Youtube at current traffic levels is probably over 2 billion dollars per year.

  3. With 4.2 billion views per month on Youtube videos, if Google manages to monetize that with overlay advertising at $15 per 1000 views, that would amount to 60 million dollars per month in additionnal revenue, which would amount to 720 million dollars per year in additional revenue.

    Monetization levels of clever overlay advertising is probably closer to $30 per 1000 views (the advertiser would pay 3 cents per viewer of highly targeted overlay video advertising) and half of it going to the content provider.