Proximity+memo+2+YouTube+analysis

TO: Proximity Video Team FROM: Ryan Miller DATE: September 27, 2009 SUBJECT: YouTube Strategy Analysis

This is my YouTube strategy analysis. For the past 4 years, YouTube has become the dominate online video sharing website. Gen Y users are hooked on YouTube and with no competition in site, YouTube isn’t going anywhere.


 * Profile**

YouTube is a website in which users can upload and share videos with the rest of the world. This is a video sharing website created by three former PayPal employees in February of 2005. In 2006, YouTube was bought and is now currently operated by Google.


 * Competition**

Although there have been controversies in the past over YouTube and copyrighted information, YouTube has stayed strong to keep progressing and competition is nowhere in sight. In May of 2007, a study was conducted to see the top 5 online video websites (calculated by number of U.S visits). YouTube came in first, with a total of 59.95% of users visiting their site. MySpace Video came in second place with a total of 16.5% of U.S visits. In May of 2008, the same study was done to see which online video sites were progressing and a significant change in statistics was seen. Exactly one year later, YouTube’s online visits increased 26% to 79.5% of the U.S visiting. MySpace Video users dropped 44%. The second place online video website is currently sitting 65% behind YouTube on number of U.S visits. The market share in the video online websites clearly belongs to YouTube; it doesn’t appear to be changing in the near future.


 * Strategy**

YouTube’s strategy has not changed since day 1. As one website put it, “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. The more connections you have with top publishers and social media users, the easier it is to make a video go viral through the help of such entities. The hyping process for most viral videos is artificial so creating them is all about having numbers and connections.” This simple but effective strategy is where YouTube gets its revenue. By advertising, other corporations such as CBS and Google are teaming up with YouTube means big money.


 * Implications**

Because of the reasons stated above, Gen Y will continue to post and view videos on YouTube because:

· YouTube remains a free online video website. · YouTube is easy to access, and well known to the public. · Because YouTube already has so many users, people will jump on the bandwagon; meaning those who don’t use YouTube will eventually hear about it and try it out. · Current users (76%) will continue to use YouTube because they have developed a history with it. · Aspiring singers, artist, comedians, etc can gain fans, receive comments, and criticism from posting on YouTube

Every day more visits are being recorded on YouTube. I believe that YouTube will remain the number one online video website for years to come, and potentially gain more revenue by possibly charging to see some videos. Things are looking up for Gen Y and the YouTube community.


 * References**

[|Kirk] Patrick, Marshall. June 26, 2009 “YouTube Continues to Destroy Competition.” []

Wikipedia, “From Wikipedia the Encyclopedia” http://en.wikipedia.org/wiki/YouTube

YouTube. “Company History” []

Kam, David. “YouTube Marketing Strategy”. June 2009. http://marketingdeviant.com/youtube-marketing-strategy/