network LiveRail (our profile) has just released a ‘State Of The Industry Report’ for Q3 2008. It reports that video ad spending currently only represents 2.36% of all online advertising, but that it is expected to grow over 55% next year. Right now only 20.95% of internet video streams are being monetized. LiveRail also noted that NBC’s online Olympics coverage failed to monetize well, however Hulu.com is doing good business. Indeed LiveRail states that Hulu will be a more successful business than YouTube, because of its ability to sell advertising across 100% of its inventory - compared to just 3% for YouTube.In July we reported that Hulu is set to earn $90m in its first year. After paying off their content partners, Hulu’s net revenue will probably be between $12.5 million and $25 million. This seems like a success, surely, but we had some doubts. “As Hulu grows in popularity,” we wrote, “their bandwidth, marketing costs, and overhead will increase as well, and it will remain a struggle for the company to earn revenue.”
Source: ReadWriteWebTags: 5 million, advertisers, bandwidth, content owners, content partners, coverage, doubts, good business, internet video streams, nbc, olympics, popularity, q3, questionable quality, risk factors, struggle, successful business, us audience, worldwide revenue, youtube
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