YouTube has taken steps in recent years to entice more direct users, like creating exclusive deals with popular content creators, including Michelle Phan and Epic Rap Battles, and redesigning its home page to make it more of a destination rather than a repository. It has also addressed the issue that YouTube's core audience is too narrowly dominated by young viewers and this year signed a content deal with the NFL to host game clips and interviews.
The Pentagon’s admission, relayed to the Senate, came a week after The Atlantic revealed “errors in accounting” in how the U.S. had tracked and billed the Saudi-led coalition for refueling costs—a service that was among the most visible and controversial elements of support as civilian casualties grew. Washington’s support began in March 2015 under President Barack Obama, without explicit congressional authorization, and continued under the Trump administration, amid growing outrage in Congress over Saudi conduct. That changed last month when the Pentagon said it had ended aerial refueling at Riyadh’s request. The Pentagon’s acknowledgement puts a number to at least part of the expansive assistance that the U.S. provided to the Saudi-led coalition in Yemen over the last few years.
There are over a million members of the YouTube Partner Program. According to TubeMogul, in 2013 a pre-roll advertisement on YouTube (one that is shown before the video starts) cost advertisers on average $7.60 per 1000 views. Usually no more than half of eligible videos have a pre-roll advertisement, due to a lack of interested advertisers.
The results reflect YouTube’s struggles to expand its core audience beyond teens and tweens. Many YouTube users treat the site as a video repository to be accessed from links or embedded video players posted elsewhere, rather than visiting YouTube.com daily. Google executives want them to turn on YouTube the way they turn on television, as a habit, where they can expect to find different “channels” of entertainment.
As Grayson notes, PewDiePie’s endorsement of the E;R channel continues a long trend of the vlogger using his influence to normalize white supremacist alt-right rhetoric to an alarming — and, on YouTube, increasingly widespread — degree. In 2016 and 2017, PewDiePie faced intense backlash for multiple instances in which he promoted Nazi symbolism and anti-Semitism, including a video in which he threw a Nazi “heil” salute, and one in which he hired a pair of performers from a freelancer website to hold up a sign reading “Death to all Jews,” ostensibly as a satirical exercise. He followed that so-called stunt with a video where he used a racist slur during a gaming live stream.
The Hawaii native (real name Mark Fischbach) launched his YouTube channel in 2012 when he was a biomedical-engineering student at the University of Cincinnati. He was going through tough times: He’d broken up with his girlfriend, been laid off from his desk job and had an adrenal-gland tumor removed that surgeons found when they went to take out his appendix.
It helps, too, that the same young viewers who eschew television in favor of YouTube are bonkers for video games. “Ten to 15 years ago, gaming wasn’t cool. You didn’t game because it was cool, you gamed because you loved it,” says David Huntzinger, a digital-talent agent at WME. “Now you have Drake going on Twitch and playing Fortnite, and [professional] athletes in the locker room saying they can’t stop playing Xbox—it’s what these kids are living and breathing.”
Observers speculate Google has sought streaming rights to on-demand TV shows and movies to bolster YouTube Red, its new subscription service. Some media reports suggest Google could go a step further and buy rights to live TV channels, making it a more direct foe of pay TV providers such as Comcast (CMCSA), AT&T (T) and Verizon Communications (VZ). Google is usually mentioned when broadcasting rights to major sports are up for grabs.
YouTube Premium (formerly YouTube Red) is YouTube's premium subscription service. It offers advertising-free streaming, access to exclusive content, background and offline video playback on mobile devices, and access to the Google Play Music "All Access" service. YouTube Premium was originally announced on November 12, 2014, as "Music Key", a subscription music streaming service, and was intended to integrate with and replace the existing Google Play Music "All Access" service. On October 28, 2015, the service was relaunched as YouTube Red, offering ad-free streaming of all videos, as well as access to exclusive original content. As of November 2016, the service has 1.5 million subscribers, with a further million on a free-trial basis. As of June 2017, the first season of YouTube Red Originals had gotten 250 million views in total.
But recent research has painted another picture. Scoring a place in the top 3 percent of most-viewed channels could bring in ad revenues of just $16,800 per year, according to analysis for Bloomberg News by Mathias Bärtl, a professor at Offenburg University of Applied Sciences in Offenburg, Germany. If you quit your job, that's barely enough to break through the poverty line.
The good news is that income is rising, but efforts to generate a broad and loyal audience that turn to the service on a regular basis for original content appear to have hit a wall. The Journal points out how three years ago YouTube spent hundreds of millions of dollars on original content to build new channels, only to see many of them fail. Getting people to visit the site directly and regularly because there’s something specific they want to see, rather than dropping by occasionally via a link on another site or online service, appears to be a big challenge for the company.
The tech conceit of starting with nothing and growing a business into being profitable sounds appealing. Who wouldn't like to minimize initial investment? But the successes have typically required hundreds of millions, if not a billion or more, of investment to ultimately succeed. And there are many ways in which the grand concept can fall short the way theory sometimes does when faced with the reality of application.
ChuChu has changed over time—it has slowed the pacing of its videos, focused on the key elements of scenes, and made more explicitly educational videos. But in the wilds of YouTube, the videos with the most views, not the most educational value, are the ones that rise to the top. ChuChu’s newer videos, which have more of the features Johnson looks for, have not had the time to hoover up as much attention, so the old ones keep appearing in YouTube searches and suggestions.
It was after Krishnan joined the creative team, Chandar told me, that ChuChu really began to achieve global popularity. What made the difference, in part, was that Krishnan decided to rewrite nursery rhymes that he felt didn’t end well or teach good morals. What if Jack and Jill, after falling down while fetching the pail of water, get back up, learn from the resilience of birds and ants, actually get the damn pail of water, and give it to their mom? “It was ‘Jack and Jill 2.0,’ ” Chandar said. “I thought, This is how a nursery rhyme should be.”
The driver dropped me off just south of the center of the city, in an area of new high-rises that overlook Srinivasapuram, a fishing village on the Bay of Bengal. The village hangs on to the edge of the city, which has been modernizing fast; the government has been trying to relocate the village for years. From my hotel, I watched tiny figures wander over to the Adyar River estuary and squat, staring up at the opulence of the new Chennai.
In May 2013, creation of live streams was opened to verified users with at least 1,000 subscribers; in August of that year the number was reduced to 100 subscribers, and in December the limit was removed. In February 2017, live streaming was introduced to the official YouTube mobile app. Live streaming via mobile was initially restricted to users with at least 10,000 subscribers, but as of mid-2017 it has been reduced to 100 subscribers. Live streams can be up to 4K resolution at 60 fps, and also support 360° video. In February 2017, a live streaming feature called Super Chat was introduced, which allows viewers to donate between $1 and $500 to have their comment highlighted.
Merchandise has become an increasingly important revenue stream for these top digital stars, almost all of whom (No. 1 being a notable exception) are in their 20s and 30s. Each of the 10 on our list now has a line of merchandise, whose blossoming sales help account for that 42% income increase from a year ago. “I’ve built this huge community, and we’ve made a lot of people laugh,” says Fischbach, who sees Cloak as the first step toward an empire built on assets more tangible than video uploads. For now, though, all those gaming clips serve as a force multiplier for the man known as Markiplier. Like any savvy businessman, he’s thinking ahead. “I’m not going to be able to make videos on YouTube forever,” he says. “I need to plan for the future.”
If you really love making video content, consider doing it as a side hustle – something to beef up your resume, find a creative outlet or boost your professional profile in the area about which you broadcast. When it comes to making it big on YouTube, "It's obviously becoming more challenging as there are more creators out there, and everyone is fighting for an audience," Vaught says. "But the barriers to entry are also lower."
The idea of making millions off of videos the way YouTubers like PewDiePie famously have certainly seems like a pseudo-new-American Dream. And while not all of us will reach internet stardom with our videos, it might be worth looking into how you could make a few dimes from the popular platform. So, how do you make money from YouTube, and what will you need?
“Even if advertisers are paying a decent amount to promote their products through video ads, only a portion of their expenditures ever make it into content creators’ pockets,” says entrepreneur Michael Johnston. “For example, if advertisers are paying an average of $20 per 1,000 ad impressions, the videos where those ads are being shown may only generate $2 or $3 per 1,000 views.”
On January 27, 2015, YouTube announced that HTML5 would be the default playback method on supported browsers. YouTube used to employ Adobe Dynamic Streaming for Flash, but with the switch to HTML5 video now streams video using Dynamic Adaptive Streaming over HTTP (MPEG-DASH), an adaptive bit-rate HTTP-based streaming solution optimizing the bitrate and quality for the available network.