YouTube upgrades embed codes to highly quality images for thumbails, now a search box for searching videos when the video stops playing, and even video annonations and closed captions which previously could only be used by watching videos on YouTube’s website. Although embeds may account for a lot of views, they are not included with advertising.
Hulu has already gave this embed option with a search box and it seems like just adding this one option will send a lot more viewers straight to YouTube’s website.
The official video of the embed changes to YouTube according to Google:
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