Youtube + Hulu = Video platform challenge to generate business
Hulu is a US based video sharing platform that’s currently being “hype” since they’re transforming traffic into business. We’re then quick to make a comparison with Google’s Youtube business model that is still not of the level we can expect from the Internet global leader. But after the first impression, we can question the relevancy of the comparison: first because they’re not in the same business field, and second because of the objective they’re aiming at.
Hulu’s business model is aiming at delivering advertising, content being held as a support, while Youtube is addressing amateur content. Business fields of the 2 video sharing platform are not similar, appealing different kind of users, since providing with content from opposite owners (amateur and professional). Hulu is competing with iTunes and pay-per-view platform (online and offline), serving quality content when Youtube is leader in user-generated videos sharing and compete with platforms such as MetaCafe or BoreMe.com.
Hulu is then adapting the offline business model, using content as a reason to see advertising, when Youtube is aiming at creating a new breed of business model. It’s like making a comparison between FaceBook and vertical businesses like Gawker Media or Digg. I do think there’s more business to generate from user generated content than from advertising since there are many more ways to make companies engage with consumers than in pushing online advertising people already don’t want offline.
A way Youtube can leverage the users pool they have? generate activities to turn viewers into active users and make them engage with brands through video collaboration and voting. A bit theorical, but some companies are already testing it (Vitrue and Memelab for example). Engaging with community activities would be the key.
Google’s Business Video Service : New Media Art | September 3rd, 2008 at 4:02 pm #
[...] YouTube thing under a different name, using a video share platform that had some business gravitas. Here’s a look at Hulu, a video platform for professional (read TV) [...]