YouTube has for several years been the uncontested champion in online video content, but as everything changes on the Internet at a fast pace, so have the recent contenders to YouTube’s dominance over the online video market. The primary challenger is Hulu, the place to go to stream premium content, such as new television shows from many major networks.
Although the market share of Hulu is quite low compared to YouTube, (2.6% to 40.9%), Hulu is rapidly gaining popularity and also has quite a bit better revenue-to-viewer model. The largest barrier to Hulu becoming a major threat to YouTube is that it’s still only available in the US, a fact that is certainly due to licensing and legal issues. Conveniently for YouTube, this was one element that was relatively ignored earlier in its lifespan, as much of its content was illegal. After a barrage of complains from major network owners they have severely the amount of illegal content available.
But the rise of Hulu is by no means slowing down the obscene continued growth of YouTube, whose users on average upload 20 hours of video a minute to the site. YouTube has taken steps to be more like Hulu, adding full-length shows and full-length movies. Similar to Hulu, they also only offer these within the United States.
Time will tell if YouTube’s changes are enough to slow down the rise of Hulu. This Arizona web designer’s prediction is that Hulu will continue to reign supreme in premium content while YouTube will remain the master of user-generated content.