The online-video unit posted revenue of about $4 billion in 2014, up from $3 billion a year earlier, according to two people familiar with its financials, as advertiser-friendly moves enticed some big brands to spend more. But while YouTube accounted for about 6% of Google’s overall sales last year, it didn’t contribute to earnings. After paying for content, and the equipment to deliver speedy videos, YouTube’s bottom line is “roughly break-even,” according to a person with knowledge of the figure.
New challengers also add urgency to her task. Facebook and Twitter Inc., which routinely send traffic to YouTube, are building their own video offerings. Facebook, and startups such as Vessel, are trying to poach YouTube stars. Meanwhile, Amazon.com Inc. and Netflix Inc. are changing the image of “online video” by licensing Hollywood-produced content and creating original programming.
The men know this with quantitative precision. YouTube analytics show exactly when a video’s audience falls off. ChuChu and other companies like it—whatever their larger philosophy—can see exactly what holds a toddler’s attention, moment by moment, and what causes it to drift. If a video achieves a 60 percent average completion rate, ChuChu knows it has a hit. Using these data doesn’t let it “crack the algorithm”; everyone has access to a version of these numbers. Instead, Chandar uses the analytics to tune his and other creators’ intuition about what works.
ChuChu TV, the company responsible for some of the most widely viewed toddler content on YouTube, has a suitably cute origin story. Vinoth Chandar, the CEO, had always played around on YouTube, making Hindu devotionals and little videos of his father, a well-known Indian music producer. But after he and his wife had a baby daughter, whom they nicknamed “Chu Chu,” he realized he had a new audience—of one. He drew a Chu Chu–like character in Flash, the animation program, and then created a short video of the girl dancing to the popular and decidedly unwoke Indian nursery rhyme “Chubby Cheeks.” (“Curly hair, very fair / Eyes are blue, lovely too / Teacher’s pet, is that you?”)
Like any good mogul, Fischbach is diversifying: In October, he cofounded an athleisure line, Cloak, with fellow list member Seán McLoughlin, better known as “Jacksepticeye” (No. 8, $16 million). The workout line includes $85 sweaters and $35 T-shirts. Even if they intend to exercise nothing more than their thumbs, fans have snapped the gear up: The presale items sold out in 48 hours.
What kind of sales multiple does this fast-growing video juggernaut deserve? It's tough to think of a direct comparison. Netflix, which trades for over eight times its 2018 revenue consensus, relies on subscription revenue rather than ads. And whereas YouTube largely relies on ad revenue-sharing deals with content partners, Netflix directly pays its content partners for their material.
YouTube does not usually offer a download link for its videos, and intends for them to be viewed through its website interface. A small number of videos, can be downloaded as MP4 files. Numerous third-party web sites, applications and browser plug-ins allow users to download YouTube videos. In February 2009, YouTube announced a test service, allowing some partners to offer video downloads for free or for a fee paid through Google Checkout. In June 2012, Google sent cease and desist letters threatening legal action against several websites offering online download and conversion of YouTube videos. In response, Zamzar removed the ability to download YouTube videos from its site.
This YouTube Money Calculator provides a glimpse into what a user could make with YouTube by estimating a commonly accepted CPM range based off of the average amount of views you insert down below. We take it one step further to provide users with various settings, allowing them to customize the experience. Please remember that these figures are Youtube Estimated Earnings, as there are many mitigating factors which decide what your overall CPM will be.
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.