YouTube earns advertising revenue from Google AdSense, a program which targets ads according to site content and audience. The vast majority of its videos are free to view, but there are exceptions, including subscription-based premium channels, film rentals, as well as YouTube Premium, a subscription service offering ad-free access to the website and access to exclusive content made in partnership with existing users.
ChuChu learns many lessons from parents, who provide the company with constant feedback. It heard from parents who questioned the diversity of its characters, who were all light-skinned; it now has two light-skinned and two dark-skinned main characters. It heard from parents who wondered about the toy guns in one video; it removed them. It heard from parents about an earlier version of the “Johny Johny” video, in which the little boy sleeps in a communal bed with his family, as is common in India; in a new version, he has his own room.
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.
The way advertising works with YouTube is probably one of the most complicated things that comes with trying to make money off of YouTube. The real estimate comes out to about $7.50 per 1,000 impressions. The difficult part is actually defining the word ‘impressions.’ The only time you make money on YouTube is when someone interacts with your ad or when it leaves an ‘impression’ on them.
In October 2010, Hurley announced that he would be stepping down as chief executive officer of YouTube to take an advisory role, and that Salar Kamangar would take over as head of the company. In April 2011, James Zern, a YouTube software engineer, revealed that 30% of videos accounted for 99% of views on the site. In November 2011, the Google+ social networking site was integrated directly with YouTube and the Chrome web browser, allowing YouTube videos to be viewed from within the Google+ interface.
Promote your videos. Only videos that record thousands of visitors and channels that update videos frequently make the cut for YouTube's Partner Program. Wait to apply until you've developed a following and have garnered thousands of hits for your channel and videos. Promote your videos on your blog, through forums, and wherever else it's possible to leave a link.
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.
On February 28, 2017, in a press announcement held at YouTube Space Los Angeles, YouTube announced the launch of YouTube TV, an over-the-top MVPD-style subscription service that would be available for United States customers at a price of US$35 per month. Initially launching in five major markets (New York City, Los Angeles, Chicago, Philadelphia and San Francisco) on April 5, 2017, the service offers live streams of programming from the five major broadcast networks (ABC, CBS, The CW, Fox and NBC), as well as approximately 40 cable channels owned by the corporate parents of those networks, The Walt Disney Company, CBS Corporation, 21st Century Fox, NBCUniversal and Turner Broadcasting System (including among others Bravo, USA Network, Syfy, Disney Channel, CNN, Cartoon Network, E!, Fox Sports 1, Freeform, FX and ESPN). Subscribers can also receive Showtime and Fox Soccer Plus as optional add-ons for an extra fee, and can access YouTube Premium original content (YouTube TV does not include a YouTube Red subscription).
In order for a YouTuber to get paid for an ad, the viewer of their video must have Ad-Block turned off (meaning they will see all the ads on videos) and must watch at least 30 seconds of videos they could otherwise skip. Or, this will work if the viewer sees smaller ads like banner ads, according to YouTuber Mah-Dry-Bread. The money generated from the viewer watching these ads is split between YouTube and your channel.
This goes against what has drawn many audiences to the platform in the first place. YouTube has a history of LGBT acceptance – being the home of the “it gets better” videos, in which celebrities and public figures tell their coming out stories. Many people have also spoken about how YouTube’s videos on transitioning or mental health helped them greatly. So given this, it is hoped that going forward, YouTube also remembers to pay attention to their communities and audiences as well as the big brands and content creators.
“The way YouTube is distributed is not always conducive to ad revenue,” said Tim Bajarin, principal analyst with Campbell-based Creative Strategies, which tracks the the technology sector. “The YouTube ads are on the side, but they are not embedded in the programming, like you see in television.” The current YouTube format might be good for consumers, but that doesn’t mean it’s all that great for the bottom line, Bajarin said. “They are going to have to change things up,” Bajarin said.
Broadcasters snipe at the quality of YouTube's videos, aiming to hold on to TV advertising. Competing in subscription-based services vs. the likes of Netflix and Hulu would take big content investments. Not knowing YouTube's costs, margins or growth history will make it hard to gauge how it's meeting the challenges -- and the potential for a blow to its value to Alphabet, whose overall market capitalization approaches $500 billion. Alphabet stock closed Friday at 747.60, up 1.5%.
Some investors and others have renewed calls for more transparency from YouTube in light of accounting rules and recent questions raised by the Securities and Exchange Commission about its disclosures. They say YouTube has become a material part of Alphabet’s business and an important driver of its growth, warranting quarterly disclosure of its revenue, costs and profitability. Some investors are also arguing that the lack of disclosure around YouTube could potentially be undervaluing Alphabet.
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.