Morgan Stanley’s Internet Trends report from last month takes a big turn from previous reports – the focus is nearly 100% on social applications and how they are taking over the Internet. Key takeaways:

• YouTube + Facebook page views > Google or Yahoo page views (and may be bigger than both combined)
• 6/10 top internet sites are social (youtube, live.com, facebook, hi5, wikipedia, orkut); none were on the list in 2005
• YouTube has 258 million users, 50% visit weekly or more
• >50% of Facebook users log in daily, 95% of Facebook users have used at least one third party application
• Skype revenue is $1.67/user/year, up 9% Y/Y
• 14 million photos uploaded daily on Facebook
• Google + Yahoo = 61% of U.S. Online Ad Revenue
• Google: $4.4b ad revenue in Q4, paid out $1.4 billion to partners
• Yahoo: $1.6 billion in ad revenue in Q4, paid out $429 million to partners

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