90 Percent of Online Video Sites Will Disappear

In this San Francisco Chronicle article by Ellen Lee, Charles River Venture Capitalist George Zachary predicts that 90 percent of online video sites will disappear. Some will simply shut down; others will be gobbled up by larger companies. (Brief ad here- if anyone wants to gobble up CubeBreak, make an offer… I just got a new job and probably won’t have time for it).

Does this bring you back to 1999/2000?

The froth of activity surrounding online video is reminiscent of the dot-com boom and bust just a handful of years ago, when companies were created seemingly overnight to tackle Web site hosting, online retail and other new avenues made possibly by the Internet. In many of the most popular fields, a glut of companies would be formed, setting the stage for a shakeout. Most closed, unable to attract enough customers or sales, leaving customers and investors in the lurch.”

Here’s the Hitwise report on the Top 10 Video Sites. This is share data not unique views, and Hitwise has shown that YouTube’s share exceeds that of the next several players combined.

1. YouTube www.youtube.com

2. MySpace Videos www.vids.myspace.com

3. Yahoo Video Search www.video.search.yahoo.com

4. MSN Video Search www.video.msn.com

5. Google Video Search www.video.google.com

6. AOL Video http:us.video.aol.com

7. iFilm www.ifilm.com

8. MetaCafe www.metacafe.com

9. Grouper www.grouper.com

10. GoFish www.gofish.com

Source: Hitwise

8 Replies to “90 Percent of Online Video Sites Will Disappear”

  1. Congrats on the new job, but I hope you still keep up with Cubebreak and the blog. The site always cheers me up, and it’s way too early to pack it in. All those industries that we wish we were there for the defining years: tv, film, prostitution… well this is one of those times! It’s the toddler stage when the big boys haven’t figured it all out yet, the technology isn’t quite there and there’s room for an indie to do something interesting.


  2. Well…considering there are really only 3 independent companies on that list (i dont think MSN or Google will shut down anytime soon)….it means all those really smart VC’s out there should start digging for #’s 10,9,8 on the list, say stalking horse in the market, dontya think?


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