1. Outlook for video and the strategies of the competitors
AOL
Strategy of AOL was to target a wider audience and not to focus on any specific demographics. As of August 2007, AOL gained a significant user base with 13.6 million unique users (Appendix 2). AOL video introduced 45 new content channels and free streaming content with options to purchase and download full-length movies. AOL also offered UnCut Video through which users could upload and share videos directly from camcorders, mobile phones or PCs.
MSN
MSN’s strategy was to catch up with YouTube in the market share, even though YouTube had the lead, it was considered that there is still a lot of room available for growth and innovation. MSN video featured a variety of content available for download directly onto users’ potable media devices. It also offered Soapbox through which users could upload videos, rate them, comment on them, create tags and RSS feeds as well as share links via email with others.
Yahoo
Yahoo’s strategy was to extend and expand its capabilities in order to compete with others. After its re-launch in 2006, it combined the traditional video search engine, with web 2.0 services and linking to other sites that allowed users to host, share and tag their videos through Yahoo! Mail and Messenger. In August 2007, Yahoo! Video gained 12 million unique visitors, which were more than twice as that of the previous year.
MySpace
MySpace TV was an enhanced version of MySpace with video-sharing capabilities. MySpace strategy was to create a video destination on the web with all the content they has acquired previously when it was a social media network where users put their lives online. MySpace was a major destination for advertisers as well as music destination. As of August 2007, MySpace TV was the second-leading video site, with 16.8 million unique users.
Metacafe
Metacafe strategy was to attract users to upload original content including emerging talents and Hollywood celebrities. It also offered a Producer Reward Program through which content creators could get $5 per every 1000 views. Metacafe used its own video ranking technology to adjust videos distinction on the site based on its recognition. Metacafe claimed more than 4.1 million unique users as of August 2007.
Joost
Joost strategy was to offer a fast, proficient and low-priced distribution method of high quality videos over the internet through the use of peer-to-peer technology. Users of Joost had access to any show regardless of the time of day with controls to skip forward and backward within a show. Joost established a partnership with CBS, which allowed CBS to showcase its content as well as creating opportunities for unique advertising and delivery framework.
HULU
Hulu’s strategy was to provide premium professional content and to focus on a widely distributed high quality product. Hulu’s content included all NBC programs as well as showed from small networks and provided a user interface that allowed web site creators and bloggers to embed video clips in their sites. Hulu was considered to be a challenger for YouTube and posed a greater threat to Apple’s iTunes.
Blip.tv
Blip.tv was an online television network focusing on featuring, monetizing and promoting the best shows on the web. Its strategy was to have content creators focus on making great shows while it would take care of the distribution, publicity and marketing, technology and monetization. Blip.tv shared its revenues with show creators and had approximately 500,000 unique visitors as of November 2007.
Other Competitors
Other competitors in the video market included Break.com, which provided incentives to users for submitting their videos. Veoh distributed content in original form instead of converting it to low-quality format. Brightcove offered users to fund their content with monetization. In addition, Atom Films offered original content by independent creators including short films, animations and series..............................
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