YouTube is the most popular
free online video platform and the world’s second most visited website, which
was launched in 2005 by Jawed Karim, Steve Chen, and Chad Hurley. Originally,
it was intended as a dating site but it soon expanded to general video content.
Google saw its huge
potential and in 2006 bought it for $ 1.65 billion.
At that time, the company had 65 employees and did not generate income. Today,
it employs 5,000 people and its main source of income is the monetization of
YouTube has 2 billion registered
users, where 81% are 15-25 years old. The largest traffic comes from the United
States (15%), followed by India (8%) and Japan (4.6%) but there are a total of
91 countries and 80 different languages. On average, 500 hours of video are
uploaded per minute worldwide, and 70% of views are made from mobile devices.
competitor of YouTube is Vimeo, the platform for sharing videos online that has
gathered 150 million creators worldwide and has 1.24 million subscribers. In
2018, it generated revenues of $160 million with 8,700 employees. YouTube is
the leader of the online video market with 2 billion registered users and
revenues of $15 billion from advertising.
How the company makes money
YouTube’s main source
of income is advertising, which consists of including different types of ads
inside or around the videos that users post, where the advertiser pays per
second on the screen or for the viewer leads so the video creator receives a
percentage of income.
generated revenues of $ 15.1 billion in 2019 and each year
it increases about $ 3 billion thanks to its Direct Response and Brand
Advertising formats, which increasingly are more appealing and have improved
distribution, increasing the expense of advertisers.
The second source of
income is non-advertising services that include YouTube Premium and YouTube TV,
for which users pay a monthly fee. Google is currently investing significantly
in YouTube’s subscription services, with increasing competition in the market.
YouTube Premium allows
the viewing of all videos hosted on YouTube without having to see advertising.
In addition, it provides access to exclusive original content produced by the
main creators, allows offline playback and background video for mobile devices.
YouTube TV is a video streaming service only available in some cities in North
America. It has content from 70 television networks, plus movies and series on
demand for $ 50 a month.
Vimeo is the platform for sharing videos online that is part of the InterActive Corp (IAC) group. It was created by filmmakers Jake Lodwick and Zach Klein in 2004 who were looking to develop an easy and fun way to share videos with their friends. Today, it is the meeting point for 150 million video creators worldwide, it has 1.24 million subscribers, and in 2018 generated revenues of $ 160 million with a total of 8,700 employees.
service does not have advertising and allows free viewing of the videos, as
well as the options to share, store and comment as well as a social network.
Their source of income is the monthly and annual subscriptions that users pay
and obtain cloud-based services in exchange to create, host, stream, monetize,
analyze and distribute online content on different devices.
Wistia is a developer of
video software and audiovisual content that was founded in the United States by
Chris Savage and Brendan Schwartz in 2006. Today, it has more than 100
employees and generates annual revenues of $ 40 million. It has nearly
500,000 clients in 50 countries and works for brands such as HubSpot,
MailChimp, Starbucks, and Sephora.
company has become a provider of solutions for the creation and distribution of
video, measurements, and databases for hundreds of industries around the world.
Also, it supports companies that create long-form video content to build their
Dailymotion is a French website
that allows uploading and sharing video, that is present worldwide with content
in 25 languages and 43 local versions. Owned by telco Vivendi, the platform was
created in 2005 by Benjamin Bejbaum and Oliver Poitrey and today is valued at $
128 million and generates $110 million in annual revenues.
It has 300 million active users.
includes advantages such as advanced recommendations based on algorithms, and
the ability to discover sports, music, politics, fashion and eSports content
from around the world. More than 3.5 billion videos are viewed through the
incorporated player. All users are free to share their video and the platform
delivers innovative technology resources, great flexibility, and visibility to
Twitch is an American
platform specialized in video game and eSports content that was launched by
Justin.tv in 2011 and, in 2014, it was sold to Amazon by $ 1 billion. With
1,500 employees, n 2019 it generated $ 230 million in revenues. It has
three business units that include subscription service, advertising, and the
sale of “bits” that users use to give tips, share emoticons with friends and
cheer their favorite streamers.
one of the most used entertainment platforms among 18-34-year-old people. Every
month, 3.2 million users broadcast live and it also has a library of 124
million clips on demand. The service has streamed video to 245,000 viewers
worldwide at the same time. It is the most popular video service for eSports
and video game lovers.
SproutVideo is a company that
specializes in video solutions for hosting, marketing, security, storage, and
streaming, which was launched in 2010. With headquarters in Brooklin, New York,
its staff is composed of less than 50 employees. It receives an average of 105,495 monthly visits and
the business model is by subscription starting from a $ 25 monthly fee. Its
annual revenues are estimated to be $ 50 million.
seeks to help thousands of businesses and companies succeed with their online
videos and that is why it hosts millions of contents on its platform, which are
distributed worldwide. It supports any type of format and videos in HD and UHD.
Also, it uses a global CDN (Content Delivery Network) to ensure quality
IGTV is the video service
launched in 2018 by Instagram, the image-based social network belonging to
Facebook, where users can post long-term videos that both their followers and
the general public can access. Instagram was founded by Kevin Systrom and Mike
Krieger in 2010 in the United States and is one of the fastest-growing social
media platforms. Facebook bought it in 2012 for $ 1 billion and today it has 1
billion monthly active users who post over 100 million photos and videos per
it generated revenues of $ 20 billion globally through its
main source of income, advertising, which can be included in any of its
formats: photos, videos, stories, dynamic carousel or IGTV. IGTV is a long and
vertical format video channel, which can be accessed both from Instagram and
from a standalone app. Its content is designed to last longer than the IG
Stories, and regular users make videos of 10 minutes or more.
Metacafe is a short-form video
sharing platform that was created in Israel by Eyal Hertzog and Arik Czerniak
and launched in 2003. The content
specializes in movies, video games, television, music, and sports, and is
notable for its exclusivity and material selection. It also has Video Rank
technology that positions the best content for users.
has 12 million unique users per month in the United States and 40 million
worldwide. The service has 2 million registered users and receives 120 million
visitors per month. The platform exceeds 400 million videos published per month
and it works with the advertising business model.
Veoh is the video service that was
created by the American entrepreneur Dmitry Shapiro in 2005 and was officially
launched two years later. Its performance was not as desired until in 2010,
almost on the verge of declaring bankruptcy, that it was acquired by the
Israeli group Qlipso for a not disclosed
an alternative to services like YouTube to watch movies and TV shows. It has a
bookstore with more than 1 million videos that come from different sources,
including the world’s most important television networks and also content
generated by the platform users. It contains HD material and subscribers can
either watch it online or download the content in the mobile app to have it
TikTok is the
mobile application for iOS and Android that allows users to upload music videos
or recreate different situations from movies and TV shows in short formats of
up to 1 minute in length. The platform was created in 2016 by the Chinese start
up ByteDance and in its country of
origin it is known as Duoyin.
it exceeds 500 million users and in 2018, ByteDance generated revenues of $ 8.4
billion, where the majority was generated in China. Among all its applications,
it has 1.5 billion active users per month and 700 million active users per day.
DTube is a decentralized video
platform that has no moderators and relies on the cryptocurrency and blockchain
system to pay its subscribers. The service was launched in 2016 by Steemit, the social network
developed by Ned Scott and Dan Larimer that allows users to own their data. The
company is valued at $ 68 million.
DTube uses a new model that
offers a transparent voting mechanism that determines the popularity of content
and the distribution of income, while preventing censorship. Based on the
blockchain model, it creates a financial mechanism that allows users to earn
rewards and does not collect personal data. 90% of the income goes to the
The top 10 YouTube competitors are: Vimeo, Wistia, Dailymotion, Twitch, SproutVideo, IGTV, Metacafe, Veoh, TikTok, and Dtube. Together they have raised over $ 30 billion between their estimated 48,370 employees. YouTube has 5,000 employees and is ranked 1st among its top 10 competitors. The top 10 competitors average 4,837.