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Overview
Internet Video Industry
Company History
Google and Google Video

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Although Google had a stellar performance in Web search, many of its other services, such as Google Video, were less successful. YouTube came to dominate the video market for user-generated content (UGC), while Google Video tried various entry strategies and ultimately failed, ending with the acquisition of YouTube in October 2006.
The case starts by showing the growing market share of Internet Video and User-generated content (UGC). Secondly a short history of both YouTube and Google Video will be given before and after its merger in 2006, followed by an overview of the main competitors in the Internet Video marketplace. Then several topics as the market segmentation of online video consumers in the U.S., financial and online advertising, and YouTube’s revenues and costs will be discussed.
Internet Video Industry
In the past couple of years Internet Video has become one of the consumers most popular technologies. The number of viewers watching video on the Internet has grown significantly, unlike the traditional broadcast television which had been declining. In 2006 one out of three people claimed watching Internet Video, mostly interested in short, user-generated clips, movie trailers, music videos and new clips. Consumers are never likely to pay for the content.

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