In 2013, YouTube introduced an option for channels with at least a thousand subscribers to require a paid subscription in order for viewers to watch videos.[300][301] In April 2017, YouTube set an eligibility requirement of 10,000 lifetime views for a paid subscription.[302] On January 16, 2018, the eligibility requirement for monetization was changed to 4,000 hours of watchtime within the past 12 months and 1,000 subscribers.[302] The move was seen as an attempt to ensure that videos being monetized did not lead to controversy, but was criticized for penalizing smaller YouTube channels.[303]


For any well-meaning kids’ producer, one model to look to for inspiration is Fred Rogers—PBS’s Mister Rogers. Rogers didn’t have any deep academic background in children’s development, but early on, he grasped the educational possibilities of the new medium, and in the 15 years between the first children’s show he produced and the national premiere of Mister Rogers’ Neighborhood, he worked constantly to make it better for kids. ChuChu could well be going through a similar stage now. Founded just five years ago, it’s encountering a different, and tougher, media landscape than Rogers did—but his path is still worth following.

YouTube is one of the most popular websites on the planet, receiving billions of views a year and paying out millions to the content creators that it hosts. Money earned through YouTube is generated by advertisements. Content creators who host ads on their videos receive about half of the ad revenue those ads generate, while YouTube takes the rest. Anyone can monetize their videos, as long as their videos do not break copyright law.
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.
YouTube ads provided a big percentage of the Segarses’ income during those early days, and worked well with their content. “Our workouts require strategically placed water breaks, which easily lends itself to monetization/ads that aren’t intrusive to the user experience,” says Segars. “People even joke about how relieved they are to see ads and get a quick minute to catch their breath.” Meanwhile, that revenue allowed them to adopt a no-sponsor policy. “It has cut out a lot of monetization opportunities, but our audience is well aware of our stance and appreciates it,” Segars continues. “We think that trust is an important part of building a brand.” As a result, they’ve roped in a loyal audience that’s now willing to pay for a variety of workout programs and meal plans for sale on the Fitness Blender website.
On one side lies many overlapping subcultures that make up huge swaths of the YouTube populations: its tremendous gaming communities, including Let’s Play-ers, live streamers, machinima-style editors, and vloggers; its prank cultures and their overlap with stunt personalities like Jake and Logan Paul; and its increasingly insidious alt-right presence.
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Both private individuals[246] and large production companies[247] have used YouTube to grow audiences. Independent content creators have built grassroots followings numbering in the thousands at very little cost or effort, while mass retail and radio promotion proved problematic.[246] Concurrently, old media celebrities moved into the website at the invitation of a YouTube management that witnessed early content creators accruing substantial followings, and perceived audience sizes potentially larger than that attainable by television.[247] While YouTube's revenue-sharing "Partner Program" made it possible to earn a substantial living as a video producer—its top five hundred partners each earning more than $100,000 annually[248] and its ten highest-earning channels grossing from $2.5 million to $12 million[249]—in 2012 CMU business editor characterized YouTube as "a free-to-use ... promotional platform for the music labels".[250] In 2013 Forbes' Katheryn Thayer asserted that digital-era artists' work must not only be of high quality, but must elicit reactions on the YouTube platform and social media.[251] Videos of the 2.5% of artists categorized as "mega", "mainstream" and "mid-sized" received 90.3% of the relevant views on YouTube and Vevo in that year.[252] By early 2013 Billboard had announced that it was factoring YouTube streaming data into calculation of the Billboard Hot 100 and related genre charts.[253]

But from where I’m sitting, these videos are a lot like the TV show Jackass – which was on MTV between 2000 and 2002. The show featured self-injuring stunts including inserting a toy car into one cast member’s anus, snorting wasabi, and tattooing in a moving off-road vehicle. The show was broadcast before 10pm, prior to a campaign led by US Senator Joe Lieberman to remove it.
Of course, YouTube is funded by advertisers. So it makes sense to pay attention to their wants and desires. But under the current model, brands’ reactions are often a placeholder for third party regulation. And at the moment – as content creators are sketching the line for appropriate content – it is often advertisers who have the final say about acceptability.

On November 6, 2013, Google implemented a comment system oriented on Google+ that required all YouTube users to use a Google+ account in order to comment on videos. The stated motivation for the change was giving creators more power to moderate and block comments, thereby addressing frequent criticisms of their quality and tone.[383] The new system restored the ability to include URLs in comments, which had previously been removed due to problems with abuse.[384][385] In response, YouTube co-founder Jawed Karim posted the question "why the fuck do I need a google+ account to comment on a video?" on his YouTube channel to express his negative opinion of the change.[386] The official YouTube announcement[387] received 20,097 "thumbs down" votes and generated more than 32,000 comments in two days.[388] Writing in the Newsday blog Silicon Island, Chase Melvin noted that "Google+ is nowhere near as popular a social media network as Facebook, but it's essentially being forced upon millions of YouTube users who don't want to lose their ability to comment on videos" and "Discussion forums across the Internet are already bursting with outcry against the new comment system". In the same article Melvin goes on to say:[389]
Libya blocked access on January 24, 2010, because of videos that featured demonstrations in the city of Benghazi by families of detainees who were killed in Abu Salim prison in 1996, and videos of family members of Libyan leader Muammar Gaddafi at parties. The blocking was criticized by Human Rights Watch.[425] In November 2011, after the Libyan Civil War, YouTube was once again allowed in Libya.[426]
The SEC late last year prodded the company to explain why it doesn’t share YouTube data, according to regulatory filings in February. Accounting rules require companies to disclose revenue for operating segments that account for 10% of a company’s total revenue, profit or combined assets. YouTube’s numbers are included in Alphabet’s advertising figure.
Understand this, Certain KeyWords Pay More than Others.  Advertisers will pay more for the keyword, “home mortgage” (CPC $17.63) than “cheap phone cases” (CPC $1.38) because the end return is a lot higher.  If someone ends up closing on a home loan that could make them upwards of $5,000+, whereas the end return on a cheap phone case would only be $15.  Would you rather get paid from a phone case video that gets a million views with a CTR of 0.01% or a home mortgage video that only gets 10,000 views with a CTR of 0.08% ?  Consider the scenarios below with the given keywords and their cost per clicks.
Make your videos with a specific type of person in mind.  This is basic advertising 101; identifying your target demographic.  Don’t tell me that your demographics are 21 – 55 year old women.  This is the shotgun approach that’s too general and vague.  Do you talk to a 21 year old girl the same way you’d talk to a 55 year old lady?  Of course not.  Define your audience and create videos that’s catered to them.

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.
YouTube offers users the ability to view its videos on web pages outside their website. Each YouTube video is accompanied by a piece of HTML that can be used to embed it on any page on the Web.[123] This functionality is often used to embed YouTube videos in social networking pages and blogs. Users wishing to post a video discussing, inspired by or related to another user's video are able to make a "video response". On August 27, 2013, YouTube announced that it would remove video responses for being an underused feature.[124] Embedding, rating, commenting and response posting can be disabled by the video owner.[125]
That kind of growth suggests that something unpredictable and wild is happening: America’s grip on children’s entertainment is coming to an end. ChuChu is but the largest of a new constellation of children’s-media brands on YouTube that is spread out across the world: Little Baby Bum in London, Animaccord Studios in Moscow, Videogyan in Bangalore, Billion Surprise Toys in Dubai, TuTiTu TV in Tel Aviv, and LooLoo Kids in Iași, a Romanian town near the country’s border with Moldova. The new children’s media look nothing like what we adults would have expected. They are exuberant, cheap, weird, and multicultural. YouTube’s content for young kids—what I think of as Toddler YouTube—is a mishmash, a bricolage, a trash fire, an explosion of creativity. It’s a largely unregulated, data-driven grab for toddlers’ attention, and, as we’ve seen with the rest of social media, its ramifications may be deeper and wider than you’d initially think.
They could even offer faster encoders for people uploading videos to youtube so it didn’t take so long as a premium feature and I think a lot of streamers would pay a few bucks to have more control over their stream. I’ve never really put much thought into it but I’m sure they could do a whole bunch of things before they resort to the need to make youtube suck in order to keep the lights on.
Not to put too fine a point on it, but this is almost precisely the problem that the rest of the media world finds itself in. Because quality is hard to measure, the numbers that exist are the ones that describe attention, not effect: views, watch time, completion rate, subscribers. YouTube uses those metrics, ostensibly objectively, when it recommends videos. But as Theodore Porter, the great historian of science and technology, put it in his book Trust in Numbers, “Quantification is a way of making decisions without seeming to decide.”
The Death Note review that PewDiePie cited uses a racial slur to refer to one of the characters in the movie. The video also contains a reference to a false white nationalist conspiracy theory that Heather Heyer, the protester who was murdered at the white supremacist Unite the Right rally in Charlottesville, Virginia, in 2017 — and whose killer was recently convicted and sentenced to life in prison — actually died of a heart attack.

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.


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.
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They could even offer faster encoders for people uploading videos to youtube so it didn’t take so long as a premium feature and I think a lot of streamers would pay a few bucks to have more control over their stream. I’ve never really put much thought into it but I’m sure they could do a whole bunch of things before they resort to the need to make youtube suck in order to keep the lights on.

The great thing about sponsorships is that you don’t have to give YouTube a cut. Plus, you can negotiate whatever contracts you want based on impressions and the size of your audience. In most cases, the amount of revenue you generate from sponsorships is substantially more than YouTube ad revenue. (Meanwhile, you can still generate ad revenue. So it’s like having two sources of income from the same video.)

The money you earn on YouTube is entirely dependant upon how many views your videos receive. If you have a large number of subscribers and all of your videos receive thousands of views, the ad revenue will be high. If your videos have a low number of views, those videos will not generate much in terms of revenue. “Gangnam Style,” for example, was a viral hit that received over two billion views and generated as much as $5.9 million in revenue. However, even popular users generally see views in the thousands rather than the billions, so earnings are considerably lower on average. As of 2013, it is estimated that one video with a million views can earn the creator between $800 and $8,000.
^ 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.
With two small kids in my own house, I haven’t been navigating this new world as a theoretical challenge. My youngest, who is 2, can rarely sustain her attention to watch the Netflix shows we put on for my 5-year-old son. But when I showed her a ChuChu video, just to see how she’d react, I practically had to wrestle my phone away from her. What was this stuff? Why did it have the effect it did?
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.
Pakistan blocked access on February 23, 2008, because of "offensive material" towards the Islamic faith, including display of the Danish cartoons of Muhammad.[415] This led to a near global blackout of the YouTube site for around two hours, as the Pakistani block was inadvertently transferred to other countries. On February 26, 2008, the ban was lifted after the website had removed the objectionable content from its servers at the request of the government.[416][417] Many Pakistanis circumvented the three-day block by using virtual private network software.[418] In May 2010, following the Everybody Draw Mohammed Day, Pakistan again blocked access to YouTube, citing "growing sacrilegious content".[419] The ban was lifted on May 27, 2010, after the website removed the objectionable content from its servers at the request of the government. However, individual videos deemed offensive to Muslims posted on YouTube will continue to be blocked.[420][421] Pakistan again placed a ban on YouTube in September 2012, after the site refused to remove the film Innocence of Muslims, with the ban still in operation as of September 2013.[422] The ban was lifted in January 2016 after YouTube launched a Pakistan-specific version.[423]
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The choice of the name www.youtube.com led to problems for a similarly named website, www.utube.com. The site's owner, Universal Tube & Rollform Equipment, filed a lawsuit against YouTube in November 2006 after being regularly overloaded by people looking for YouTube. Universal Tube has since changed the name of its website to www.utubeonline.com.[33][34] In October 2006, Google Inc. announced that it had acquired YouTube for $1.65 billion in Google stock,[35][36] and the deal was finalized on November 13, 2006.[37][38]
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