South Korean rap sensation Psy's Gangnam Style was unsurprisingly the most watched video on YouTube in 2012, with at least 983 million views worldwide.
The track reached number one in the music charts in many countries.
YouTube top 10 most popular videos in 2012 include Justin Bieber lip syncing, a dubstep violin and Felix Baumgartner's record-breaking jump from the edge of space, 24 miles up.
Psy's massive number of views is well ahead of last year's winner, Rebecca Black's Friday, which had less than 200 million views at the same time last year.
YouTube said: "This year, Korean Pop music transcended boundaries and took the world by storm”. "2012 has been a big year for YouTube. You’ve been watching over 4 billion hours of video a month”.
In second place was Canadian band Walk off the Earth's "unconventional" cover of Gotye's single Somebody That I Used To Know, with at least 141 million views.
A video about alleged Ugandan war criminal Joseph Kony was third
In third with 95 million was Kony 2012 - a film to promote awareness of alleged Ugandan war criminal Joseph Kony in order to have him arrested.
At least 55 million people saw the fourth placed video - Bieber and Selena Gomez singing along to Carly Rae Jepsen's song Call Me Maybe, and fifth was Barack Obama vs Mitt Romney, Epic Rap Battles Of History.
It features well-known Obama impersonator Alphacat and was seen by at least 46 million people globally.
Top 10 videos:
3. KONY 2012