Is Google (GOOG) Making Money On Video? It Has Tons Of Traffic (YHOO)(TWX)(VIA)(DIS)(NWS)(MSFT)

Photo of Douglas A. McIntyre
By Douglas A. McIntyre Published
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New comScore data shows that the number of videos viewed online moved up 66% in February compared with the same month last year. US internet users viewed over 10 billion videos for the most recent month measured.

The $64,000 question is whether any of the big companies spending substantial sums to host and send these videos over the internet are making a dime. Google has not shown there is any substantial revenue in it. Perhaps that will change when it reports its quarterly earnings.

It would seem more likely that the premium video content from sites like Yahoo! (NASDAQ: YHOO) and Viacom (NYSE: VIA) could bring in significant revenue from commercials. Google’s YouTube video is primarily user-generated and is unlikely to be attractive to marketers.

Based on the comScore numbers below. the investment in video content by major internet and media companies is massive.

Property                                    Videos         Share (%) of
                                                (000)            Videos
Total Internet                         10,089,048          100.0
Google Sites                          3,567,202            35.4
Fox Interactive Media                 586,236             5.8
Yahoo! Sites                             293,120             2.9
Microsoft Sites                          293,085             2.9
Viacom Digital                           218,011             2.2
Time Warner – Excl. AOL           132,734             1.3
Disney Online                           130,609             1.3
AOL LLC                                  114,853             1.1

Minutes spent watching video also give Google a huge advantage:

Property                             Unique Viewers       Average Minutes
                                                (000)               per Viewer
Total Internet                           134,739                203.8
Google Sites                             81,791                109.4
Fox Interactive Media                 55,741                 10.9
Yahoo! Sites                             37,111                 16.6
Microsoft Sites                          27,080                 18.8
Time Warner – Excl. AOL           21,329                 14.6
Viacom Digital                           21,280                 29.3
AOL LLC                                   20,970                  7.3
Disney Online                           13,245                 10.3

Data from comScore.

Douglas A. McIntyre

Photo of Douglas A. McIntyre
About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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