NEW YORK - Content is crucial, but aggregation is also important for online video, according to a panel discussion, "Future of Online Video," at the 36th Annual UBS Global Media and Communications Conference Wednesday.

"It absolutely starts with good content," with some 2 percent of content generated 48 percent of ad revenues, said Jason Kilar, Hulu CEO. However, online aggregation allows "American Idol" or other popular shows to reach many more on the top of 25 million TV viewers, "by turning non-followers and casual followers on to the show," he added.

"A destination (site) is important and necessary, but not sufficient," Kilar said. "Aggregation is a very useful service for users," with the content just one-click away, which is what Hulu is doing, he added in the UBS conference.

Jason Hirschhorn, Sling Media Entertainment Group President, also agreed that aggregators play an important role on the Web. "Individual content creators can't monetize video effectively," he said during the panel at the UBS conference.

Everyone can create content nowadays and there is so much fragmentation, "distribution certainly looks like king these days," Hirschhorn said.