YouTube has declared that users are downloading 100 million videos from its site every day.

YouTube has seen a huge rise in popularity since late last year, and is now the leader in internet video.

It launched in Europe just a week ago.

All of the videos on the site can be downloaded for free and are usually a couple of minutes long.

According to YouTube, 60% of all videos watched online are downloaded from its site, while MySpace only accounts for a 19% share in the market. Hitwise figures show that YouTube hold 29% of the US's multimedia market.

Last month, 2.5 billion videos were watched by 20 million users.

The challenge for the popular site is to generate revenue commensurate with the number of visitors it receives. At the moment, it generates profits from banner advertising.

Some analysts see an acquisition by a company like Yahoo or Google as the best way forward for YouTube.