..Google Inc (NASDAQ:GOOG) now rings up $3.6 billion in revenue on YouTube — almost all of it from advertising — and that top line will grow 20%, to $4.3 billion, in 2014, according to Barclays. Based on estimated operating margins of 30% to 35%, Barclays puts the total value of YouTube at between $15.6 billion and $21.3 billion.
As expected, media companies are pouring money into efforts to capitalize on the shift. Time Warner Inc (NYSE:TWX) recently led a round of investing that raised $36 million for a YouTube studio named Maker. They’re not alone, Bertelsmann, Comcast, Discovery Communications, and the Chernin Group, as well as several VC firms, have plowed capital into an assortment of other YouTube channels and networks. The driving momentum behind this fundamental change is of course a younger demographic, which is using cable TV less and less.
Americans overall have their TV sets on for 34 hours a week, according to Nielsen, and they watch just one hour of video on the Internet each week. But viewing habits among millennials point to a dramatic shift: 18- to 24-year-olds watch just 23 hours of TV and 21/2 hours of online video.Floating Path explores economic and cultural phenomena, and hopes to educate, inspire and provoke. Discover their wide range of daily content here.