The online video industry has evolved from small online video companies to giant entities over the last 6 years. This growth is reflective of technological advances and the power of broadband technology. The first online video was produced in 2004 and the ability of broadband speeds to allow playing flawless flash animations engendered the online video industry. In 2005 several online video companies were started and to date the industry is thriving.

One of the most popular online video companies is Ebaumsworld. Ebaumsworld is a site where videos, flash cartoons and video games can be accessed. The site gained its popularity because it allowed users to access videos, flash animations and other media collected from all over the internet. Ebaumsworld remained at the top of the industry until new players like YouTube gained ground. Today Ebaumsworld receives about a million hits per day compared to YouTube’s one billion. The loss of Ebaumsworld market leadership is attributed to several unethical practices, involving sourcing of their content. While YouTube had a clear strategic direction and internal stability, Ebaumsworld has suffered legal battles and internal instability which negatively affected its public image. Such weaknesses came at a time when a more creative and fairly ethical YouTube was rising.

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