Who is winning the race to become the top site for live Web video? A quick check on Google Trends for Websites and comScore suggests that over the past four months Justin.tv is pulling ahead of the pack. According to Google Trends, Justin.tv is attracting more than 300,000 unique visitors a day, compared to only about 60,000 for both Stickam.com and Ustream.tv. Comscore measures visitors on a monthly basis, but shows a similar relative breakdown, with Justin.tv pulling in 1.9 million monthly uniques worldwide versus 860,000 for Stickam, 790,000 for Ustream.tv, and 440,000 for Mogulus. (See chart below).

Both of these measure only the traffic to the main Websites of each competing live Web video service, and do not include how many people watch the videos in embeddable players elsewhere on the Web. But they are apples-to-apples and should give a good indication of the overall trend.

Ustream.tv, at least, realizes it needs to change something in order to catch up. Today it launched a redesign of its site, which gives DIY broadcasters the ability to add text and graphic overlays to their videos and better metrics on how many people are watching their videos. Also, viewers can now subscribe to specific broadcasters. The company claims 10 million unique viewers overall for the month of June, including videos watched offsite. It has 410,000 registered users. 100,000 of them are active and are broadcasting 10,000 to 15,000 live events a day Some of its better known users include Johnny Knoxville, Dane Cook, James Blunt, The Plain White Ts, and both Presidential campaigns. Steve Gillmor, the editor of TechCrunchIT, uses it as well for his NewsGang Live show.

But that right there might just be the problem. Would you rather watch Steve Gillmor talking with his wife about Twitter on a split screen while her cat climbs the couch in the background (this is actually on right now), or French cowgirls in bikinis on Justin.tv? No offense, Steve, but the featured live streams on Justin.tv just seem younger and more fun than the stuff on Ustream.tv.

Very few would argue with the statement that video is hot right now. From the cultural phenomenon of YouTube, through to the rise of live streaming services, money is pouring into startups from content creators through to service providers. Getting into video isn’t as easy as setting up a blog, so here’s some advice of which direction to head in.

The basics

Obviously you’ll need a camera to get started in video; if you’re a Mac user you might have a cam built in, but if not web cam’s are fairly cheap. Alternatively people like Chris Pirillo stream from a professional video camera, but even a second hand older model can also work, for both live and recorded shows to computer. For camera effects, CamTwist for the Mac is free and fully featured with effects such as text, clocks, image overlays, Picture in Picture, and much more. Fix8 (our coverage here) offers cartoon style overlays if animation or funny faces are more your thing.

Recording

You’ll have two ways of recording a video: local or to the web. Local could directly on to a camcorder through to Quicktime or something in-between. Quicktime Pro (between $30-$45) does the recording and it’s a quick and easy solution. To the web means recording your video directly to a website; the advantages are that you don’t have to upload it and it’s available immediately, however depending on your internet connection the recording quality can be significantly poorer than recording a video locally and uploading it. YouTube offers the direct recording option and is an obvious candidate, but the Live streaming services also allow you to record to their services and even distribute your video out to sites like YouTube later. I’ve also found that the quality of the live stream services can often be higher in recording than YouTube.

Streaming Live

Live in the newest sector in online video with venture capital being spread around a range of services. Live offers some advantages over doing recorded video alone (although they are not mutually exclusive); streaming live means you can interact with and network with your audience while creating archive footage than can be distributed later. Companies in this space include Justin.tv, Ustream.tv, Mogulus, BlogTV, Stickam and others. All of the services have strengths and weaknesses and you should explore each one, but if you haven’t got time for that I’d recommend Justin.tv or Ustream.tv. Ustream.tv is attracting the professional, higher quality streaming shows so if you want to be in that space, you’ll be well positioned. Their tool set including full video conversion makes for a solid product. Justin.tv has a slant towards a younger, Gen Y audience, and if you’re pitching more to that audience it’s the better place to be. I also found when testing both that Justin.tv was more reliable for streaming quality from outside of the United States, and at times Ustream.tv was unusable for me, even on a 14mb down, 1mb up ADSL2 connection; you wouldn’t experience this in the US however. Of the others, Mogulus has a stronger emphasis on professional video and doesn’t have the strong community yet, BlogTV has a lot of potential, and Stickam seems to be dominated by soft porn, at least when I visited it.

Distribution

I asked Chris Pirillo for some tips for this post and one of his key points was simply: “you must understand that (a) It’s all about YouTube, and (b) It’s all about YouTube.” Like it or not YouTube dominates online video today more than Google dominates search in the United States. Other video bloggers I’ve spoken to suggest distribution to many sites, but always making sure YouTube is top of the list. TubeMogul is one the oldest of the video distribution sites, and is simple to use and free. You upload your video to their servers, enter you user name and password for a list of sites (first time only) then press the button and off they go. TubeMogul also tracks traffic statistics from each site so you can see which videos are being watched there. An alternative service is Hey!Spread (our review here).

The other consideration in distribution is getting your video onto other devices, like iPods. The key is to provide the correct file type and feed for services such as iTunes. You can do it manually with a WordPress plugin and by making sure the file is available on your server in the correct format, or you can use Blip.tv.

We’ve covered the occasional content deal on Blip.tv but we’ve never seriously looked at their distribution platform, and it’s the reason shows like Rocketboom, Mahalo Daily and Moblogic are using Blip.tv. On top of the obvious video hosting everyone in this space provides, Blip.tv also offers distribution to external blogs (including an automatic option), the Internet Archive, de.licio.us (links), Flickr (pics from the video), Adobe Media Player, MySpace, Twitter (text alerts), Facebook, Yahoo Video, AOL Video, Akimbo, Lycos Mix, MeeVee, MeFeedia, Meebo, Blinkx, Splashcast, Pando and the most important one of all: iTunes. Blip.tv offers an iTunes subscription feed and file conversion service; users do have to manually go to the dashboard within Blip.tv and request the file conversion on a free account, but with a premium account ($8/ mth or $80/ yr) get the conversion done automatically. A premium account also has other benefits, such as priority file transcoding that in my testing made it the quickest service available (that is time from when the video was uploaded until it was ready to view).

There was an argument between Ze Frank and Rocketboom a year or two back where Ze Frank disputed Rocketboom’s viewer numbers as they were reporting 10x the traffic of Ze’s The Show. The key to Rocketboom’s success has always been distribution, and for a long time you couldn’t open a media player without seeing Rocketboom pre-loaded. Distribution is key, and combining services like TubeMogul and Blip.tv make it a lot easier.

Content

Chris Pirillo told me that the key is to make sure every video has something different, and that you should use supportive text with each video posted as Google loves text. Ultimately what you decide to create is up to you: it may be something simple like a web cam chat, or you may want to get more creative. We cant tell you what will work for you, but the easiest way to start is to get on YouTube and just see what different people are doing, you’re sure to find something to inspire you.

Ustream.TV has taken $11.1 million Series A in a round that included Doll Capital Management and existing investor The Band of Angels.

Ustream.TV was in the first wave of live broadcast sites that launched in 2007 along with Justin.TV, BlogTV and Mogulus. Ustream.TV took $2 million in angel funding in December and appointed General Wesley Clark to the board. Rumors surface in January that the company was in takeover talks with Microsoft with a $50 million price tag.

Ustream.TV has grown from its original launch to become a broadcast hub for Presidential hopefuls, popular entertainers and musicians, technology industry gurus and business executives. The live broadcasting service has been complemented with a depth of tools that allows people like Chris Pirillo to build a video empire. Ustream.TV offers video conversion and download in .FLV, .WMV, .MP4 and .MOV, and users can syndicate videos created from live shows on video sites such as Blip.tv. According to Ustream.TV, their traffic has grown 325% over the last 6 months.

Ustream.TV said the funding would be used to accelerate product development and “meet market demand for a live online video broadcasting platform that allows people all over the world to engage in real-time.”

Justin.TV will today start offering live mobile streaming to its users via a tie-up with Qik.

With the new service, Justin.TV users will have a option to stream from a mobile phone directly from their control panel without the need to have a Qik account. The integration is seamless, and the only difference in the video feed will be a Qik logo somewhere on the screen.

Qik has grown rapidly since first launching in invite only alpha testing. Despite not being open for signups, the service has over 2000 regular users (Scoble and Calacanis among them) and is growing at approx. 20% a week. Justin.TV needs little introduction, having created the live streaming genre and gone on to become a highly popular service.

I spoke to Justin.TV’s Michael Seibel and Qik’s Bhaskar Roy prior to today’s announcement. Justin.TV sees the deal as a value add for its users that gives it an edge over competitors. I mentioned Qik’s partnership with Mogulus and Seibel said that Justin.TV doesn’t see Mogulus as a competitor, noting that while their focus is on webcams and quick to use and stream shows, Mogulus is focused on high quality, TV level productions. Roy said that Qik sees the partnership as another way to get their service out to more users, and that after their testing phase they are ready for the growth the Justin.TV deal will bring.

Sarah Meyers got the scoop (video above), transcript as follows care of NewTeeVee:

Meyers: “When are you guys gonna do live video on YouTube?”

Chen: “2008. We’ll do it this year.

“Live video is just something that we’ve always wanted to do, we’ve never had the resources to do it correctly, but now with Google, we hope to actually do it this year.”

Now for the guessing game: which live video startup will fold first once YouTube dominates the market? YouTube will be last to market, but the same momentum that has seen YouTube dominate video will now be applied to live video. Like video, content creators want to be on the service that gives them the most exposure, no matter how good the alternatives area (after all, YouTube doesn’t offer the best quality video). YouTube already has the user base; live video streamers will flock to YouTube like a moth to a flame.

LiveVideo.com from MySpace founder Brad Greenspan’s company LiveUniverse is yet another live streaming service, but it combines the best of existing services with Yahoo Live style functionality for a package worth looking at.

LiveVideo.com offers the following features:

• show archiving, so users can record shows to be played back later
• embedding of live streams
• chat associated with the stream
• video conferencing Yahoo Live style, in that users can add other streaming users to their page and interact with them
• Comment board/ profile page similar to YouTube where users can leave comments
• Photo gallery, no quite Flickr, but allows users to share photos

LiveUniverse is pitching LiveVideo.com as “the first fully interactive, global, live streaming platform;” it’s not, but it is a feature rich offering that may well find favor.

Ustream.tv is said to be in advanced talks with Microsoft to be acquired for $50 million, according to a report from Valleywag. Given it’s very early morning as the post goes live we are unable to put calls in to confirm the deal, but might have more later.

Ustream.tv is one of the first wave of live streaming service providers that includes companies such as Justin.tv, Blogtv and Mogulus. Ustream.tv has offered a complete package of streaming and post show videos, and has a strong reputation as a reliable provider of live shows and events. The company announced a deal January 29 to stream the Republican convention, and has also featured other events including shows with Republican Presidential candidate Mike Huckabee and Chuck Norris. Ustream.tv is also the home of major league live streamers including Chris Pirillo, and also scored a viral win with Walrus TV.

The acquisition, if true, does seem a little strange timing wise given Microsoft’s takeover offer for Yahoo, however Valleywag suggests it’s a pre-emptive pre-Series A deal that will allow Microsoft to showcase Silverlight to a broader audience.

The new mobile site from BlogTV m.blogtv.com offers live streaming to most mobile phones without the need for a plugin (I’m presuming it’s flash based, because it doesn’t work on my iPhone.)

BlogTV claims that their mobile streaming services is the first of its type available for mobile phones. The mobile version includes the host stream, cohost and chat feed, fully replicating the normal BlogTV experience.

Mobile services such as this do rely on decent data plans that aren’t always available everywhere, but in the ongoing battle of live streaming supremacy, it’s another positive addition from BlogTV following their ICQ deal January 30.

Live video streaming service BlogTV has signed a deal with the AOL owned ICQ that will see BlogTV promoted to ICQ users.

The initial stage of the deal will see BlogTV promoted to ICQ users through the ICQ website, and in return ICQ will become the preferred instant messaging platform on BlogTV. The second stage will see ICQ users being able to use their ICQ login details to access and use BlogTV, with any revenue generated from ICQ users using BlogTV to be split between the two companies.

The first market the deal will be rolled out to is Russia, which has 8 million active ICQ users. BlogTV will operate a Russian language site customized for local market conditions.

Last week, BlogTV celebrated its 100,000th user and has so far shown 50 million viewing minutes since it launched.

The arms race to become the dominant leader in the live streaming market continues. Ustream.tv beat competitors to become the exclusive internet streaming provider for the Republican National Convention yesterday, and others including Mogulus (the official streaming partner of the Crunchies) and Justin.tv have continued to explore every opportunity for maximum exposure. Blog.TV’s move into country specific sites in conjunction with ICQ is a positive step for the service, and I’d expect to see similar deals and country specific sites from the other major players as the year progresses.

I first met Sarah Meyers when she crashed our 2006 party at August Capital. She was booted, but got enough video footage to make this video. This year she was back at the party, but as an invitee - see one of her videos here.

Meyers now lives in New York, and has been working on a new live daily tech show. It hasn’t officially launched, but her first shows started streaming earlier this week at PopSnap.net.

The show shows live daily. A time will eventually be nailed down, she says, but for now you have to check the calendar (powered by 30Boxes) to see exactly when it goes on the air. When the show is not being shown live, the last show is played on a loop. Eventually, clicking on the video will start it from the beginning.

Users can comment on the show via an embedded meebo chat widget. The show itself is powered by Mogulus, a live streaming video startup we covered back in June.

The show is clearly still working through some kinks, so be kind. But Sarah’s charisma comes out strongly in these first few episodes, and it’s clear that she will have a large following of loyal viewers.

Check out the show now and give your feedback through the chat widget. The site will officially launch in December, and archives will become available then. We are going to be one of the charter sponsors of the show.

Update: Well, she shut the site down.

We’ve been following the evolving live streaming space for some time now. The success of recorded social video on the net (read YouTube acquisition) spurred on many more video startups, including a host of video sites hoping to find an equally large demand for live content. There are a bunch of them out there, including Ustream.tv, Stickam, Blogtv.com, Operator11, Mogulus, Veodia, and Justin.tv.

Justin.tv, the first mobile lifecasting site, remained closed over the past couple of months as they experimented with the model. Today they’ve finally opened the site to anyone and partnered with On2 technologies for improved video compression. The new codec is supposed to deliver superior performance that yields higher quality video on a lower quality connection. On2’s benchmarks say their codec has a 30% performance improvement over the Sorenson video codec (commonly used in Flash and Quicktime) and it looks like Justin.tv’s streams are benefiting from it.

So why the wait? Justin.tv originally started with a rather elaborate lifecasting model where anyone could stream their life on the go with a webcam and a laptop in their backpack. It did a great job of getting them a lot of press and into a great deal of mischief, but the hardware turned out to be too costly for the average user.

Since then, the model has switched into kind of a MySpace for video casters. The site features an Apple “coverflow-style” directory of all the casters and list of top clips. Each caster gets an individually-stylized channel page with their own live cast, chat room, profile, twitter, and top highlights. They’ve also started adding professional content, like a behind the scenes cast of “One Tree Hill”. Viewers play judge and jury of the video streams, voting content for the clips they like to the front page of the site and casters seem happy to play along.

As I’ve said before, I think the live streaming model has a lot of growing up to do before we see any stand out successes. There are several hurdles to mass consumption of the medium. User generated content is often not of the highest quality. Also, live streaming doesn’t lend itself to the same embeddable distribution model that made YouTube so successful since you don’t know what live content will show up (most sites have since tied in recorded video clips). Live streaming does shine when it comes to user interaction, which has led many startups to focus on shows and events. Ustream has embraced the tech community with a host of shows and event casts. While not “live” video, Kyte.tv’s community around recently-live video is another strategy. However, Stickam, which launched in 2005, also has a MySpace look and feel and appears to be flat yet leading the pack according to Compete and Alexa. We have yet to see whether an open Justin.tv will have more success with the model.

The growth of Youtube and its subsequent $1.65 billion buyout left behind a bevy of competing video sites. Since then competitors have been seeking to differentiate themselves by focusing on longer videos, higher (bitrate) quality videos, professional content, and paying their users. However, one of the more unique approaches to differentiation has been streaming live video over the internet. If social live video gets big traction down the road, it’s most likely going to be led by one of these startups:

The oldest of the bunch, launching back in February of 2006, Stickam lets you host your own live show stream and chat on their site or embedded in your own. When your show isn’t live, you can show a pictures, audio, or recorded shows on a MySpace-like profile page. The front page of the site features the most recent show and their number of live viewers, which currently is floating around 3,000.Launched back in May, BlogTv also lets you start your own live show and chat. Every show you record is broadcasted live and then archived. You can subscribe to each show on your account, embed, rate, and recommend them. Live shows are shown on the front page, but you can also review the archived footage in their library. They just launched a new live embeddable player that lets you and a co-host stream a show with live chat directly from your blog.Yet to get out of private beta, Mogulus is focused on live video production tools. Using their tools, you can see how many viewers are waiting for your broadcast and storyboard the show you’re about to broadcast on your own Mogulus URL. With storyboarding, you can drop recorded videos into your feed at cue and even overlay graphics such as logos or titles. You can even collaborate with another producer and cooperatively shape the storyboard.The oddest of the bunch, Justin.tvlaunched with a splash and then again when police raided their apartment. The novelty of the site centered around one of the co-founders, Justin Kan, streaming his life 24/7 from a head cam. Justin.tv has yet to launch an open network, and has instead opted to expand slowly by adding a select number of dedicated “lifecasters”. Each caster gets a live feed, video archive, and chat channel. Instead of just featuring what’s live on the front page, they’ve also developed a “tips” service that lets users dig up key moments.Launched back in March, Ustream is another lifecasting network letting anyone plug in and start streaming, similar to Stickam. It’s caught on in the tech crowd with people like Robert Scoble and Chris Pirillo streaming their own shows from offices or on the road at conventions. Each caster gets a profile page where they can post their videos, photos, and thoughts. The player comes with live chat, the ability to archive footage, and embed it on your site. They feature the archived versions on their front page along with the live feeds.

Live flash video is a different animal than the recorded videos you see on all over Youtube. These sites require more accurate distribution networks because, like FedEx, their packages always have to arrive on time. Back in March, Youtube delivered over 1.1 billion streams to 53.5 million unique users. That’s an unheard of number for live video on the web. You can see a comparison of the above site’s traffic on Alexa here, but be warned that streaming sites don’t need to be refreshed to consume more content and therefore don’t generate as many pageviews as non streaming sites.

Live video also complicates the trend toward time shifted video. The serendipity of live video makes it engaging to watch, but at the same time hard to bubble interesting content to the top. Sites have reacted to the problem by archiving and rating the videos, or more interestingly, voting up individual clips.

One final problem is the accessibility of live video production for consumers. Anyone with any kind of camera can upload to one of the social video site, but with live video, producers have to be more committed if they’re going to produce quality content. To avoid the hum drum of being chained to a webcam, users have to either be very talented, or construct their own mobile cameras. Advancement in mobile phones may change that, but right now it’s a significant limitation.

Live video has one great strength, however, the ability to directly engage the audience, be they friends or admirers. This is why I think if we see tremendous success in live video casting, it will come from sites that focus on building a community around a few top new media stars that can captivate their audience and drive the bulk of the traffic to the site.