Online Video: Game, Set, Match To Google

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The July data on video viewing on the internet just out from comScore should make investors wonder why any company other than Google (GOOG) is in the online video business. Google has a 27% share of all videos viewed during the month. That was almost 2.5 billion video viewed, almost all on YouTube.

Major media sites fell far behind. Fox (NWS) had a 3.3% share. Viacom (VIA) has a 3.1% share. Time Warner (TWX) and Disney (DIS) picked up a mere 2%.

The survey highlights the problem that the old-line content companies have. The need Google’s YouTube to get substantial video distribution online. There is not way around it, under it, or over it. The barrier that the huge video-sharing site has erected is just too big.

Viacom has sued Google for IP infringement for content that it claims should not have been posted on YouTube. Fair enough. But, the suit could extend for years, and Viacom and its peers do not have that much time.

Projects like the one NBC and News Corp have put together cannot be successful. Google has sucked too much air out of the room.

Douglas A. McIntyre