Google reportedly has confirmed that it serves up one billion video streams a day, far more than most had guessed. That is four to six times higher than the best industry estimates!
Until now, Comscore, for example, has estimated that Google streams 225 million videos a day, or about seven billion a month. Nielsen has estimated Google's video streams at 5.5 billion a month.
Based on an assumption that Google represents about 40 percent of global video streams, that implies global usage of about 80 billion streams a month, again, far higher than most had supposed.
What remains a challenge is the business model. To some extent, user interest in online video does drive demand for bigger ISP access pipes.
But highly customizable, targeted episodic content underwritten by advertisers, which was supposed to be the model, remains just a hope. Hulu is essentially legacy linear TV with online distribution and fewer ads. Great for viewers, not good for content owners or distributors.
Some criticize brands or agencies for being too lazy to learn how to use online video, but there is a simple explanation for why more doesn't get done in some digital media realms: it sometimes isn't a rational use of one's time to do so.
About 11 percent of advertising budgets are allocated for all forms of online media, according to eMarketer. So in many cases, a time-pressed marketer would be hard pressed to justify spending quite a lot of time on 11 percent of the spend when a smaller amount of time can be spent optimizing nearly 90 percent of the spend.
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