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YouTube turns 10, but faces stiff competition from Facebook Videos

YouTube turns 10, but faces stiff competition from Facebook Videos

by AshwinApril 23, 2015

The Google owned video sharing website, YouTube, turns 10 today.

It was originally founded on February 14, 2005, but the first video on the website was uploaded on April 23, 2005.

This is the first ever video uploaded to YouTube. It is titled “Me at the Zoo”.

It was uploaded by Jawed Karim, one of the website’s co-founders. It is just 18 seconds long, and is poor in quality. Of course, this was before smartphones and high end cameras to be in existence.

The video has drawn almost 20 Million views in exactly 10 years.

YouTube was founded by three PayPal employees: Chad Hurley, Jawed Karim and Steve Chen. Google acquired YouTube in November 2006 for a reported sum of around $1.65 Billion.

There is no question that YouTube is the most popular video sharing website now. But can it hold on to the crown?

That question arises some doubts, as a Reuters report reveals that YouTube has a huge rival in the form of, Facebook Videos. I bet you never guessed that, right?

Facebook has announced that its users were watching 4 billion videos a day on its website. This is a huge number if you compared it to the 3 billion reported in January, and 1 billion reported in September 2014.

Google does not reveal the exact statistics of how many videos are viewed per day, but it had announced in January 2012, that YouTube had reached 4 billion daily views. Three years later, that number could well have doubled with the rise of smartphones, tablets, etc.

A brokerage firm called Cowen & Co, estimates that YouTube will reach 7.9 billion daily views, by the end of the year, and expects it to generate about $5.9 billion in revenue.

But the fact that Facebook Videos has more than tripled in just over 6 months, means that YouTube should take note of it as a serious competitor. Cowen & Co expects Facebook’s to reach about $1 billion revenue from video advertising this year.

Facebook’s earnings in the 1st Quarter, reveals that it has made about 73% of it’s revenue solely from Mobile ads. This is compared to the 53% it earned a year ago.

The company launched auto-play video ads last month, and this is what Facebook’s CEO had to say:

“Looking ahead, we believe video will play a significant role in bringing more marketers to mobile,” said Sheryl Sandberg, Facebook’s CEO¬† “More than 75 percent of global video views on Facebook occur on mobile, and we believe mobile video will become more important to marketers over time.”

The number of users who use Facebook everyday, amounts to around 936 Million. Around 798 million users access Facebook from their phones, says the report.