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Mobile Video

YouTube to Lose in User-Generated Content Battle – Ovum

LONDON -- Digital Futures -- Its very name evokes the idea of people watching content they have actually produced, but YouTube is losing out to other web players targeting the market for personal video footage, including Facebook and Snapchat, according to a leading analyst.

Rob Gallagher, who heads up research for Ovum Ltd. 's media, entertainment and consumer portfolio, is decidedly downbeat about YouTube Inc. 's prospects in this market segment, citing a number of perceived shortcomings and fierce competition from other companies.

"YouTube won't be dominant in the way everyone assumed it would be," Gallagher told attendees at Ovum's recent Digital Futures event in London. "It's not a great place to share videos. It's not a great place to talk about videos. It's not particularly instant or mobile or social."

The Ovum expert predicts that YouTube -- a subsidiary of search engine giant Google (Nasdaq: GOOG) -- will increasingly focus on being a "home" for professionally produced content as well as the "semi-professional" content that leading video bloggers (sometimes called vloggers or even YouTubers) are uploading, often in return for lucrative advertising deals.

"They'll miss out on personal videos -- the videos you now see on Snapchat will never turn up on YouTube," says Gallagher. "YouTube has introduced a community feed designed to ape the social context but we're not sure it's really enough. That crown will be claimed by someone else."

Quite simply, Gallagher thinks sites like Facebook and Snapchat are doing a much better job than YouTube of appealing to a younger audience developing what he calls "personal videos" for their own consumption.


For all the latest news from the wireless networking and services sector, check out our dedicated mobile content channel here on Light Reading.


"Personal video capture on mobile devices," as he describes it, will be an area that attracts huge interest in the next few years as major smartphone players like Apple Inc. (Nasdaq: AAPL) and Samsung Electronics Co. Ltd. (Korea: SEC) look to offset a slowdown in device sales.

"The smartphone boom is coming to an end," says Gallagher. "Annual sales growth will fall from 30% in 2014 to 3% in 2020. We'll see Apple and Samsung try to piggyback on TV and pushing devices where video is a key feature."

This development is a potentially troubling one for telcos, according to Gallagher, because of the network investments that will be needed to support growing demand for video content.

According to a recent Ovum survey of 15,000 consumers across 30 different markets, around 80% of consumers are watching online video on a regular basis but fewer than a half of those consumers said the video experience was either good or excellent. "Operators face a problem because consumers are more likely to churn," says Gallagher. "And they need to realize video is lifeblood, even if delivered by OTT players."

Ovum is also forecasting that a "personal video capture" market will give rise to an array of new devices designed to record personal experiences, including drones, wearables, robots and even connected toys.

— Iain Morris, Circle me on Google+ Follow me on TwitterVisit my LinkedIn profile, News Editor, Light Reading

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kq4ym 10/17/2016 | 2:21:51 PM
Re: Google Photos vs YouTube Yes it would seem that YouTube's warehousing of those billions of video stuff doesn't really matter in the end. And who knows what may become of those personal videos on YouTube not being watched now, but 20 years from now there may be a surprising use for all that archived history.
mendyk 10/11/2016 | 3:07:32 PM
Trouble? How is the continued high growth in video traffic "troubling" news for network operators? Isn't greater demand a GOOD thing?
macemoneta 10/11/2016 | 12:28:56 PM
Re: Google Photos vs YouTube "Non-viewed" videos are big data to me mined. Whether for AI development or targetted marketing Google gets their tithing.
brooks7 10/11/2016 | 12:23:42 PM
Re: Google Photos vs YouTube Actually it is not and not even close.

You have to host the 1B videos and have them available for streaming.

So you had best go back and think about the cost of all these non-viewed videos.

seven

 
macemoneta 10/10/2016 | 6:30:02 PM
Re: Google Photos vs YouTube You understand that the monetization of a billion videos with one view is the same as a video with a billion views, right? YouTube doesn't care; they make their money either way, then sell the metadata a thousand times.
brooks7 10/10/2016 | 6:25:42 PM
Re: Google Photos vs YouTube  

The other people are not watching your kids either.

Which is the point.  The money is in the professional videos.  Not the mom and dad with a phone videos.  Thing like Ted Talks are the money makers not you.  You are a money loser for them.

seven

 
macemoneta 10/10/2016 | 4:51:01 PM
Re: Google Photos vs YouTube Your personal views (sic) don't represent the other 1,300,000,000 people that watch YouTube videos each month. 
brooks7 10/10/2016 | 4:24:38 PM
Re: Google Photos vs YouTube @macmneta,

 

You are missing the point.  I won't spend a penny or look at an ad for a video that you make about your kids.  Sorry but I just don't care.

The bread and butter are Youtube channels that have significant following.  They can monetize themselves, plus do ads, plus bring traffic to the site.  99%+ of those family videos have 0 or 1 view.  

So, they are the loser videos of the market.

seven

 
danielcawrey 10/10/2016 | 1:52:46 PM
Re: Google Photos vs YouTube Despite the star that is YouTube fading, i think there's still a ton of opportunity in video. Snapchat has proven this, and it's unclear yet whether they will be the winner. There's still room for innovation. 
macemoneta 10/10/2016 | 12:19:15 PM
Re: Google Photos vs YouTube "So Youtube is missing out on the market for which there is essentially no money?"

 

http://www.fool.com/investing/general/2016/01/03/is-youtube-really-worth-twice-as-much-as-netflix-i.aspx

...YouTube is worth twice as much as Netflix, or about $100 billion.

YouTube is set to bring in nearly $9 billion in revenue this year, well ahead of Netflix's projected $6.8 billion.

 
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