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YouTube originally offered videos at only one quality level, displayed at a resolution of 320×240 pixels using the Sorenson Spark codec (a variant of H.263),[86][87] with mono MP3 audio.[88] In June 2007, YouTube added an option to watch videos in 3GP format on mobile phones.[89] In March 2008, a high-quality mode was added, which increased the resolution to 480×360 pixels.[90] In November 2008, 720p HD support was added. At the time of the 720p launch, the YouTube player was changed from a 4:3 aspect ratio to a widescreen 16:9.[91] With this new feature, YouTube began a switchover to H.264/MPEG-4 AVC as its default video compression format. In November 2009, 1080p HD support was added. In July 2010, YouTube announced that it had launched a range of videos in 4K format, which allows a resolution of up to 4096×3072 pixels.[92][93] In June 2015, support for 8K resolution was added, with the videos playing at 7680×4320 pixels.[94] In November 2016, support for HDR video was added which can be encoded with Hybrid Log-Gamma (HLG) or Perceptual Quantizer (PQ).[95] HDR video can be encoded with the Rec. 2020 color space.[96]
But there is something the company could do immediately to improve the situation. YouTube knows that I—and tens of millions of other people—have watched lots of videos made for toddlers, but it has never once recommended that I switch to YouTube Kids. Think of how hard Facebook works to push users from Instagram onto Facebook and vice versa. Why not try to get more families onto the YouTube Kids app? (Malik Ducard, YouTube’s global head of family and learning, said in a statement that YouTube has “worked hard to raise awareness of the YouTube Kids app through heavy promotion. These promos have helped drive our growth. Today, YouTube Kids has over 14 million weekly viewers and over 70 billion views.”)
And I don’t just mean that the Republican Party is led by the boss of a kleptocratic family business who presides over a scandal-ridden administration, that many of his closest advisers are facing prison time, that Donald Trump himself might have to stay in office just to avoid prosecution, that he could be exposed by the special counsel and the incoming House majority as the most corrupt president in American history. Richard Nixon’s administration was also riddled with criminality—but in 1973, the Republican Party of Hugh Scott, the Senate minority leader, and John Rhodes, the House minority leader, was still a normal organization. It played by the rules.
In late November 2018, YouTube announced that it would introduce a "Story" feature, similar to ones used by Instagram, Snapchat and Facebook, which would allow its content creators to engage fans without posting a full video.[119] The stories, called "Reels," would be up to 30 seconds in length and would allow users to add "filters, music, text and more, including new "YouTube-y" stickers." Unlike those of other platforms, YouTube's stories could be made multiple times and would not expire. Instead of being placed at the top of the user interface as is commonly done, the "Reels" option would be featured as a separate tab on the creator's channel.[120] As of its announcement, only certain content creators would have access to the "Reels" option, which would be utilized as a beta-version for further feedback and testing. If users engage more with the "Reels" option, it may end up as a more permanent feature and "trigger their appearance on the viewer's YouTube home page as recommendations." As of November 28, 2018, Youtube did not specify when "Reels" would arrive in Beta or when it would be publicly released.[119]
Frank Knoll will teach you everything you need to know to make massive profits on YouTube. In YouTube Profits, he describes how to post videos, write compelling SEO descriptions, add annotations, and attract viewers to your content. You’ll discover various types of ads you can use, such as overlay ads, sponsored cards, or skippable video ads. Frank explains the marketing tools you need to promote your YouTube channel, get more views, and attract more subscribers!
But what about the cost of servers, bandwith etc? I think it might be in the range of  $750 million per year to as high as $1.5 Bn plus ( we will never know as Google never reveals cost of running youtube, and Google has invested heavily in this space ). I feel Youtube as a standalone business  MAY NOT be as profitable a biz as Search and might never be since barely 10% of its content is actually monetizable. But for Google, with $30 Billion revenues, Youtube losses( even if money lost is as high as say $500 million per year) is chump change considering the strategic advantage it gives visavis competition. (Microsoft online businesses lost way more last 10 years). Youtube subsidy by Google has created a monopoly which has effectively destroyed all independent video ad network business plans.
Maybe better or more refined solutions exist, but if the history of children’s television teaches us anything, it’s that the market alone will not generate the best outcomes for kids. Nor is the United States government likely to demand change, at least not without prompting. Heroes will have to emerge to push for change in the new YouTube’d world, just as they did in the early days of broadcast children’s TV. And not all of those heroes will come from the Western world. They’ll come from all over the globe, maybe even Chennai.
In March 2010, YouTube began free streaming of certain content, including 60 cricket matches of the Indian Premier League. According to YouTube, this was the first worldwide free online broadcast of a major sporting event.[39] On March 31, 2010, the YouTube website launched a new design, with the aim of simplifying the interface and increasing the time users spend on the site. Google product manager Shiva Rajaraman commented: "We really felt like we needed to step back and remove the clutter."[40] In May 2010, YouTube videos were watched more than two billion times per day.[41][42][43] This increased to three billion in May 2011,[44][45][46] and four billion in January 2012.[23][47] In February 2017, one billion hours of YouTube was watched every day.[48][49][50]