YouTube or SuperTube?
What I discovered was a mix of good and bad news.
The bad news is that having secured just 0.3% of the total recording time of the global DIY video market the web’s home movie channel certainly hasn’t disrupted the recordable DVD market just yet.
The estimated equivalent of 12.6 Million Recordable DVD’s in an estimated global market of 4.1 Billion recordable Units would however place YouTube in the Top 5 of the best-selling new movie releases on DVD.
The good news is Google has somehow managed to convert that 0.3% market share into an advertising business that may well be bigger than the whole global Recordable DVD market. Industry estimates place the 2010 Recordable DVD Media market to be around$805 Million. Meanwhile this time last year a Citibank analyst estimated YouTube’s advertising business to be worth almost $1 Billion.
Using MySpace’s estimated CPMs and YouTube’s estimated page views, Mark Mahaney of Citigroup calculates that Google’s video site generated $727 million in revenue for 2009, and will pull in $945 million in 2010. – Mashable
Which of course raises the question if Google can make more money out of advertising selling the equivalent of 12.6 Million Recordable DVD for free why hasn’t the storage media industry and the advertisers got together to offer free advertising branded DVD-R’s to consumers in supermarkets? and what would you call such a disruptive business model? How about your SuperTube?
