I’m sure you have seen a viral YouTube video. They come in all shapes and sizes—from super popular songs like “Watch Me (Whip/Nae Nae)” to a funny grumpy cat, someone falling down, or even something completely off the wall like Ylvis' “What Does the Fox Say?" video. What do they all have in common? Well, these posters all made a ton of money on YouTube when their videos went viral.
YouTube began as a venture capital-funded technology startup, primarily from an $11.5 million investment by Sequoia Capital and an $8 million investment from Artis Capital Management between November 2005 and April 2006. YouTube's early headquarters were situated above a pizzeria and Japanese restaurant in San Mateo, California. The domain name www.youtube.com was activated on February 14, 2005, and the website was developed over the subsequent months. The first YouTube video, titled Me at the zoo, shows co-founder Jawed Karim at the San Diego Zoo. The video was uploaded on April 23, 2005, and can still be viewed on the site. YouTube offered the public a beta test of the site in May 2005. The first video to reach one million views was a Nike advertisement featuring Ronaldinho in November 2005. Following a $3.5 million investment from Sequoia Capital in November, the site launched officially on December 15, 2005, by which time the site was receiving 8 million views a day. The site grew rapidly and, in July 2006, the company announced that more than 65,000 new videos were being uploaded every day, and that the site was receiving 100 million video views per day. According to data published by market research company comScore, YouTube is the dominant provider of online video in the United States, with a market share of around 43% and more than 14 billion views of videos in May 2010.
Think of the crude, misogynistic and racially-charged mudslinging that has transpired over the last eight years on YouTube without any discernible moderation. Isn't any attempt to curb unidentified libelers worth a shot? The system is far from perfect, but Google should be lauded for trying to alleviate some of the damage caused by irate YouTubers hiding behind animosity and anonymity.
On my last day in the ChuChu offices, Krishnan related a parable to me from the Mahābhārata, a Sanskrit epic. A prince wants to be known as generous, so the god Krishna decides to put him to the test: He creates two mountains of gold and tells the prince to give it all away in 24 hours. The prince begins to do so, parceling it out to people he thinks need it. But as the day ends he’s hardly made a dent in the mountains. So Krishna calls another prince and tells him he has just five minutes to give away the gold. This prince sees two people walking along, goes right over to them, and gives each a mountain. Just like that, the job is done. The moral is unsettling, but simple: Don’t impose limits on your generosity.
Infrastructure costs -- The concept of free user services and scaling to eventually make them pay depends on the negligible price of adding additional consumers. But video is demanding of bandwidth and storage. Even if those are cheap in general, once you're handling as much material as the service does, it means big expenses for infrastructure. Although those costs won't scale linearly with the increased number of users, they do grow.
Surf around YouTube and click through the most-viewed video clips to get an idea of the types of videos that garner the most hits. Everything from original music to product reviews, pranks, and even video blogs create interest on YouTube. The goal is to create an audience, so use your webcam or digital video camera to garner interest. Remember that YouTube does not allow pornographic images, nor can you make money from cover songs to which you do not own the rights.
Estimates for YouTube's annual revenue, nearly all of which still comes from ads, vary a fair amount. But many of the estimates are now above $10 billion. At different points, Bank of America and Mizuho forecast that YouTube would post 2017 revenue of $13 billion and $12 billion, respectively. And in February, Baird's Colin Sebastian estimated YouTube is doing around $15 billion in annual sales.
ChuChu’s headquarters take up the entire first floor of a blue-glass building with bright-yellow stripes. Rows of animators flank a center aisle that houses big, colorful flourishes—weird chairs, structural columns with graffiti on them—signifying “fun tech office!” The work floor is ringed by maybe 10 offices that house the higher-ups. ChuChu says it employs about 200 people.
Consider start-up costs. Your start-up costs largely depend on the type of content you're putting out. For "Pittsburgh Dad," the cost to launch the show was virtually nothing, Preksta says. The first episode required just three supplies: Preksta's iPhone, a polo shirt from Goodwill and a pair of glasses. The show hasn't required much of an investment in technology since, "At the end of the day, it's me, Curt and a couple of lights," Preksta says.
Instead, YouTube success takes time and dedication. Kelli Segars, the co-counder of Fitness Blender, a YouTube channel with over 5 million subscribers, spent two years posting new workout videos every week before she and her husband could quit their day jobs in 2010 to focus on the brand full time. Still, without YouTube, Fitness Blender probably wouldn’t exist. “When we first set out to create free online workout videos, we found that most streaming platforms charged so much to host content that we were never going to be able to break into the industry at all, let alone offer free content to our (then nonexistent) audience,” says Segars.
It's worth noting here that even Twitter (TWTR) , which is seeing minuscule monthly user and ad revenue growth, is valued at more than seven times its 2018 revenue consensus. And Snap (SNAP) , which (though seeing strong revenue growth) is contending with slowing user growth and faces big questions about its long-term profitability, is worth over 11 times its 2018 revenue consensus.
“All I said was I like this guy’s anime review,” PewDiePie says in the video. “[The channel creator] apparently likes to have hidden and not-so-hidden Nazi references in his videos and obviously if I noticed that I wouldn’t have referenced him in the shoutout. ... I said publicly a year and a half ago that I was going to distance myself from Nazi jokes and that kind of stuff, because I want nothing to do with it. Generally, I’ve done that. I don’t really have a reason to dip into that again — it’s just stupid.”
All that money is providing Google with more financial firepower to buy the rights to stream cable networks' shows on YouTube, too, which is likely to reel in even more viewers. It also is helping finance Alphabet's investments in projects such as self-driving cars and Internet-beaming balloons. That segment, known as Other Bets, lost $865 million during the July-September period, narrowing from a $980-million setback last year as Alphabet imposed more expense controls.
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In a video posted on July 21, 2009, YouTube software engineer Peter Bradshaw announced that YouTube users could now upload 3D videos. The videos can be viewed in several different ways, including the common anaglyph (cyan/red lens) method which utilizes glasses worn by the viewer to achieve the 3D effect. The YouTube Flash player can display stereoscopic content interleaved in rows, columns or a checkerboard pattern, side-by-side or anaglyph using a red/cyan, green/magenta or blue/yellow combination. In May 2011, an HTML5 version of the YouTube player began supporting side-by-side 3D footage that is compatible with Nvidia 3D Vision. The feature set has since been reduced, and 3D feature currently only supports red/cyan anaglyph with no side-by-side support.
^ Popper, Ben (November 9, 2017). "YouTube says it will crack down on bizarre videos targeting children". The Verge. Archived from the original on November 16, 2017. In August of this year, YouTube announced that it would no longer allow creators to monetize videos which "made inappropriate use of family friendly characters." Today it's taking another step to try and police this genre.
At the end of the day, though, there are a lot of variables that can affect just how much you can make on YouTube. Your audience has a lot to do with the type of ad that would work best. For example, if you are making short funny videos, it’s probably best to not include a 30-second ad at the beginning—a viewer might just skip right on by. Luckily, YouTube has an analytics page that you can use to see just about every measurable aspect of your video—from demographics to time of day watched and location.
In politics, you need a good villain. It is far easier for environmentalists to rail against Donald Trump for weakening the Clean Water Act than it is to rail against Proposed Rule 83 FR 32227. And it was far easier for Democrats to criticize Scott Pruitt—the former EPA administrator who resigned in June under not so much a cloud of corruption as a thundering cumulonimbus of it—than it has been for them to focus attention on Andrew Wheeler, his quieter and more effective replacement.
When a video goes viral, YouTube is typically the driving force. As of 2011, YouTube is the third-ranked website globally, with hundreds of millions of users. While you might be using YouTube only to look up video of cute cats and funny pranks, other users actually generate a profit stream ranging from pocket money to money in the bank using their personal YouTube channels and the videos they create. If you want in on the YouTube gravy train, the first thing you should know is that it's not as easy as it may look.
In December 2011, YouTube launched a new version of the site interface, with the video channels displayed in a central column on the home page, similar to the news feeds of social networking sites. At the same time, a new version of the YouTube logo was introduced with a darker shade of red, the first change in design since October 2006. In May 2013, YouTube launched a pilot program for content providers to offer premium, subscription-based channels within the platform. In February 2014, Susan Wojcicki was appointed CEO of YouTube. In November 2014, YouTube announced a subscription service known as "Music Key", which bundled ad-free streaming of music content on YouTube with the existing Google Play Music service.