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Developing E-Business Case Study

YouTube
EBM Mini Project Group 6, 2nd Sem. MIM, Manipal

Introduction

Internet
Information
Email, news, groups, educational etc.

Entertainment
Multimedia, video clips, movies, TV, event broadcast

TGI Brasil study http://www.zonalatina.com/Zldata129.htm
EBM Case Study, Group 6, 2nd Sem, MIM

Introduction
Internet for Entertainment, by Age/Sex Groups

EBM Case Study, Group 6, 2 Sem, MIM
n d

source: TGI Brazil, IBOPE)

Introduction
Internet for Information, by Age/Sex Groups

EBM Case Study, Group 6, 2 Sem, MIM
n d

source: TGI Brazil, IBOPE)

Online Video Sharing Industry
Innovations and categories Category
Video Sharing Intermediaries Video Search Video eCommerce Video Editing Rich Media Advertising P2P (Peer To Peer) Video Streaming Vlog-o-sphere

Major Player
YouTube, Hulu, MetaCafe, Yahoo BrightCove, NBBC, VideoEgg, Maven Networks Google, AOL, blinkx Guba ,Amazon Undo ,MovieFlix, MovieBeam JumpCut, Lycos Mix ,Dabble, Mojiti, MotionBox, Avid aQuantive, KlipMart, PostRoller, eyeWonder, DoubleClick Bit Torrent, Azureus, Kontiki YouTube, MySpace, iFilm Ask A Ninja, Rocketboom

EBM Case Study, Group 6, 2nd Sem, MIM

Online Video Sharing Industry
Innovations and categories
Online Video Industry

Video Stream ing

Vlogosphere Video Sharing

P 2P Advertising Video E diting Interm ediaries Video Search Com erce m

www.Savvian.com

EBM Case Study, Group 6, 2nd Sem, MIM

Online Video Sharing Industry
Market Share
YouTube Market Share 2007

Yahoo! Video, 2.63% Google Video, 8.42%

Break.com, 1.57%

My SpaceTV, 17.73% YouTube, 55.28%

EBM Case Study, Group 6, 2nd Sem, MIM

Online Video Sharing Industry
Market Share
YouTube Market Share 2008

Google Video, 4.06% My SpaceTV, 9.21%

Yahoo! Video, 2.16% Break.com, 1.82%

YouTube, 73.18%

EBM Case Study, Group 6, 2nd Sem, MIM

Online Video Sharing Industry
Challenges and Concerns
Lack of a viable storage platform Video files were too large to be e-mailed Size restriction while uploading poor to non-existent interface to share videos Mediocre watching experience Long download wait time Need to install appropriate video player Codec issues, downloaded video fails to play Fragmented viewing experience Nothing to connect it to related video clips Poor grouping or organization features and tools Poor content review or rating missing methods
EBM Case Study, Group 6, 2nd Sem, MIM

Case Study

YouTube

EBM Case Study, Group 6, 2nd Sem, MIM

YouTube
The Company
Founded in 2005 by Chad Hurley, Steve Chen and Jawed Karim Ex-Employee PayPal Located in San Mateo, California USA Initially funded by Venture Capitalists, Sequoia Capital Purchased by Google Inc. within first year of operation Partners with CBS, BBC, Universal Music Group, Sony Music Group, Warner Music Group, NBA, The Sundance Channel and many more

EBM Case Study, Group 6, 2nd Sem, MIM

YouTube
Notable Statistics
Fastest growing website in Internet history On average 100 million videos streamed per day 65,000 new video clips are uploaded every day More than 13 million unique visitors per month. An average user spends 30 minutes on YouTube and most up-loaders are repeat visitors themselves. 58% of Internet videos are watched on YouTube 20% to 30% of traffic volume is from the US Wide range of user demographics, however the largest segment of users is the 18 to 35 year-olds.
EBM Case Study, Group 6, 2nd Sem, MIM

YouTube
Key success factors
Distribution of popular content (often copyrighted) drove adoption Distributing popular and hard-to-find video clips Free-form platform that allowed users to upload content Viral customer growth due to widget marketing YouTube allowed users to easily embed any hosted videos on web pages or blogs. YouTube increase its page rank on Google, thereby driving traffic via natural search Right technology platform for the desired user experience Encode videos in the Macromedia Flash format Playable with Flash player that allows video playback capability

EBM Case Study, Group 6, 2nd Sem, MIM

YouTube
Environmental factors
Bandwidth became cheaper, faster and ubiquitous Online social networks had attained critical mass Producer-side technology became more accessible; cheap digital video cameras, USB ports/ Firewire , cell-phones with video cameras Post dot-com generation was seeking an online experience that placed a lot of emphasis on entertainment Platform-side technology had become cheaper, for example storage

EBM Case Study, Group 6, 2nd Sem, MIM

Service Provided
Uploading Premium online music video hub-Playlists YouTube Groups Underground Contest YouTube Musicians YouTube Comedians

YouTube
Business Model - C2C & B2C

Value proposition
They host any video content for free, and we can distribute it anywhere we want through simple embed code.

Content discovery —more people go to YouTube to find videos
than anywhere else .

EBM Case Study, Group 6, 2nd Sem, MIM

YouTube
Business Model - C2C & B2C Revenue Model
During its first year didn't see a penny in revenue YouTube's running costs, specifically the bandwidth required, may be as high as US$1 million per-month Advertisements were launched on the site beginning in March 2006. In April 2006, YouTube started using Google AdSense. Clickable ads at the end of videos, YouTube makes well over US$1 million in daily revenue YouTube gets discounted bulk buy rates from Bandwidth provider?

EBM Case Study, Group 6, 2nd Sem, MIM

Types
Advertising Model Cost-per click payment model -Dominos Pizza Affiliate?

YouTube
Business Model - C2C& B2C Revenue Model

EBM Case Study, Group 6, 2nd Sem, MIM

Competitive strategy

• First mover strategy

YouTube
Launch and marketing Strategy
Creating a general-purpose video-sharing platform Increasing number of views by offering ‘related’ content Encouraging interaction between users Offering an external video player that could be embedded on a site like MySpace.com Viral and SEO (Search Engine Optimization) The marketing strategy of YouTube is to have a mass amount of YouTube users at your disposal to generate hype and activity within the video clip page.

EBM Case Study, Group 6, 2nd Sem, MIM

YouTube
Performance
YouTube is still growing at a faster pace in terms of traffic than Google overall.

Source: ConScore Video Metrix

EBM Case Study, Group 6, 2nd Sem, MIM

YouTube
Performance
YouTube’s completely dominates online video. It accounts for 37 percent of all videos watched on the Internet and attract about half of the audience

EBM Case Study, Group 6, 2nd Sem, MIM

YouTube
Performance
YouTube makes millions of dollars daily from its clickable ads at the end of video Each branded YouTube channel goes for $200,000 YouTube now pushing AdSense for video and spreading that wealth with more content partners.

EBM Case Study, Group 6, 2nd Sem, MIM

YouTube’s Technology
Playback Uploading Quality and codecs Platforms 3D videos

SWOT ANALYSIS

YouTube
SWOT Analysis
Strengths It is free, no fees Unlimited Resources from Google Popularity, large audience Embedding into web pages, mails, easy sharing Integration with Google search engine Integration with Google User Account User friendliness, personalization Advanced video player, features and tools, multiple browser compatibility
EBM Case Study, Group 6, 2nd Sem, MIM

YouTube
SWOT Analysis
Weakness Copyright issues Weak revenue model Need for high speed internet Poor Video resolution and audio quality Redundant and repeat content Poor content filtering and quality control Video size and encoding limitations No premium videos
EBM Case Study, Group 6, 2nd Sem, MIM

YouTube
SWOT Analysis
Opportunity Multimedia consumers Faster and inexpensive internet Growing international market Strategic alliances and partnership with TV channels, mobile service Technological advances in video streaming Increasing online TV and movie market

EBM Case Study, Group 6, 2nd Sem, MIM

YouTube
SWOT Analysis
Threats Increasing competition Blocking Diminishing competitive advantage Competitors collection Competitors video quality Competitors content filter tools Easy market penetration

EBM Case Study, Group 6, 2nd Sem, MIM

Questions To Be raised

Thank You

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