YouTube grows market share: No end in sight?

YouTube continued to outpace all competitors in the online video market in February, increasing market share from 43% to 45%. As noted on the Compete Blog earlier this month, not even Viacom could slow down YouTube’s momentum despite its billion dollar law suit. (A billion dollars??? Yep, a quick source confirms they actually served papers for one billion dollars. I feel like I’m in Austin Powers IV.).

YouTube’s improvement in market share last month is even more impressive considering that we saw several other major properties lose ground, including MySpace, Google Video, AOL Video and MSN Video all dropping one percentage point despite increased sessions on their sites. Yahoo Video (reported as traffic to their sessions dip slightly in February, but remained steady with a 3% market share.

Market share is reported as a percentage of sessions from the top 20 video sites.

Despite YouTube’s dominance, the competition is not taking it lying down. As reported in the March 9th USAToday (right above a blurb about last week’s YouTubeAwards — internet video has definitely gone mainstream), Metacafe (ranked thirteenth with a 1.2% market share for February) recently launched Café Confidential which features personal confessions submitted by users and selected by Hollywood produce Steven Bochco.

And it looks like another major site will soon contend for coveted market share; News Corp. and NBC have agreed to launch a video site this summer which will feature full episodes of many of today’s most popular shows, as well as full-length movies and clips. Google competitors AOL, MSN, MySpace, and Yahoo are all said to be involved with distribution. Will this be the move that can finally slow down YouTube’s growth? Check back in with the monthly video market share reports from Compete to find out.

To find Compete’s Top 20 Video Sites list click here.

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