ADOTAS – An online video upstart is threatening YouTube’s relatively unquestioned dominance. Hulu’s ad revenue will rival YouTube’s next year, according to Screen Digest, a digital media research group.
The Screen Digest’s Arash Amel estimates that Hulu’s U.S. revenue next year will weigh in at $180 million, about what YouTube is expected to pull in. YouTube had about 83 million unique viewers in September, compared to Hulu’s 6 million.
This year, YouTube is expected to rake in $100 million in ad revenues, compared to Hulu’s $70 million.
So why is Hulu’s much smaller audience able to pull in so many advertisers? Many say it’s because companies want to know what they’re getting – and Hulu runs only professionally produced videos, most of which are TV shows from the likes of NBC and Fox. YouTube’s short, UGC on the other hand, is seen as a dangerous gamble.