In a series of posts from Reportlinker, we review the latest music+tech news, with one big statistic per news item. All you need to know, in figures!
Google Inc.’s video service, YouTube, has grown in leaps and bounds year-on-year from the second quarter of 2014. How large has it grown?
11%: That’s how much YouTube has grown since 2014’s second quarter. Revenue totaled $17.7 billion, and profit was $3.9 billion. Google chief financial officer Ruth Porat says there are two factors contributing to this growth. The first is the growth of Google’s search business on mobile. The second is the time users spend on YouTube. The average view time has increased by 60%, with watch time on mobile doubling. YouTube has a billion monthly users. Music video publishers and labels will need to study YouTube and how its growth can benefit music artists and bands. Source: Muscially
$65 billion in market value: A strong second quarter increased YouTube’s stock value by 16.3%, increasing its market value to $65 million. For the 18-49 year old demographic, YouTube is larger than any individual American cable network, Google chief business officer Omid Kordestani said. Home page views have increased three fold, he said. Revenue has increased for advertisers as well. There are 40% more video ads than last year with the top 100 advertisers spending 60% more on ads. A year ago, YouTube was worth $3 billion. Google purchased YouTube in 2006, a year after it was founded, for $1.65 billion. Every minute, 300 hours of video are uploaded. Source: Forbes
$471.50 billion in total valuation: Record-high share prices, $703, have made Google worth $471.50 billion. That makes it the second largest business company after Apple Inc. Google expects share prices to rise further. Investors are pleased with Porat’s performance as CFO. She took over in May. Jefferies & Co analysts forecast online video ads will be worth $17 billion by 2017 in the US. YouTube is in a great position to benefit from this increase. During the second quarter, paid clicks increased by 18%, with the number of clicks from mobiles reaching the same level as on computers. In the future, analysts expect mobile paid clicks to overtake those made on computers. Source: The Rem
$45 billion: The previous record for market capitalisation gains was $45 billion, set by Apple in 2012. Despite Google’s growth, thanks to YouTube, Apple is still the most valuable company at $740 billion. There had been concerns that YouTube users would switch to Facebook which is expanding its video service in order to attract marketers. Snapchat, Twitter and Spotify also are strengthening their video services. Sources: Franchise Herald and Musically
$4 billion videos daily: That’s how many videos Facebook claims its users view. However, according to video data firm Tubular Labs, when 68% of YouTube’s top video creators posted on Facebook in May, none of them had more views on Facebook than YouTube. Research conducted by analytics firm Pixability came to a similar conclusion. Its research revealed videos posted on YouTube were viewed five times more than those on Facebook. Source: Wall Street Journal
So, how are multi-channel networks doing compared to YouTube?
– VEVO saw a 70% increase in users age 13-24. That same demographic grew an average of 63% on other networks.
– VEVO had 48,195 unique visitors in 2014. Vimeo had 38,851. Google websites totaled 162,317.
– 34% of people find new music using video services, more than any other source.
– 45% of YouTube viewers discovered new music with a video service.
Sources: Music Watch and Boyar Research
Melina Druga is an American writer and editor. She is the author of Enterprising Women: Practical Advice for First Time Entrepreneurs.