Chu Chu loved it. “She wanted me to repeat it again and again,” Chandar recalls. Which gave him an idea: “If she is going to like it, the kids around the world should like it.” He created a YouTube channel and uploaded the video. In a few weeks, it had 300,000 views. He made and uploaded another video, based on “Twinkle, Twinkle, Little Star,” and it took off. After posting just two videos, he had 5,000 subscribers to his channel. Someone from YouTube reached out and, as Chandar remembers it, said, “You guys are doing some magic with your content.” So Chandar and several of his friends formed a company in Chennai, in the South Indian state of Tamil Nadu, from the bones of an IT business they’d run. They hired a few animators and started putting out a video a month.
Facebook (FB) , which trades for about nine times its 2018 revenue consensus, is still seeing 40%-plus revenue growth and has some big growth levers left to press, is arguably a better comp for YouTube, given its business model, network effect and market dominance. But Facebook is quite profitable -- in spite of heavy spending on data centers and content security, Facebook's 2018 net income consensus stands at $22.5 billion -- and based on comments made by YouTube CEO Susan Wojcicki and others -- YouTube's profits might still be minimal thanks to large data center and content investments.
Making a lot of money on YouTube is not as easy as you might think. There are a lot of hurdles to overcome in the process. It's definitely not a way to get rich quick. However, if you have a hobby, are really good at a particular activity and would like to help people, are funny, or even if you just want to have some fun, YouTube is a great option to cash in some extra bucks doing something you love.
The power of YouTube's ad-targeting abilities -- enabled by both its own user data and outside data it can get with Google's help -- have also helped its cause. So have its investments in building quality measurement tools that help companies gauge the impact of a video ad on things like awareness of a product and attitudes towards the brand that's selling it.
In December 2011, YouTube launched a new version of the site interface, with the video channels displayed in a central column on the home page, similar to the news feeds of social networking sites. At the same time, a new version of the YouTube logo was introduced with a darker shade of red, the first change in design since October 2006. In May 2013, YouTube launched a pilot program for content providers to offer premium, subscription-based channels within the platform. In February 2014, Susan Wojcicki was appointed CEO of YouTube. In November 2014, YouTube announced a subscription service known as "Music Key", which bundled ad-free streaming of music content on YouTube with the existing Google Play Music service.
At the time of uploading a video, YouTube users are shown a message asking them not to violate copyright laws. Despite this advice, there are still many unauthorized clips of copyrighted material on YouTube. YouTube does not view videos before they are posted online, and it is left to copyright holders to issue a DMCA takedown notice pursuant to the terms of the Online Copyright Infringement Liability Limitation Act. Any successful complaint about copyright infringement results in a YouTube copyright strike. Three successful complaints for copyright infringement against a user account will result in the account and all of its uploaded videos being deleted. Organizations including Viacom, Mediaset, and the English Premier League have filed lawsuits against YouTube, claiming that it has done too little to prevent the uploading of copyrighted material. Viacom, demanding $1 billion in damages, said that it had found more than 150,000 unauthorized clips of its material on YouTube that had been viewed "an astounding 1.5 billion times". YouTube responded by stating that it "goes far beyond its legal obligations in assisting content owners to protect their works".
Karim said the inspiration for YouTube first came from Janet Jackson's role in the 2004 Super Bowl incident, when her breast was exposed during her performance, and later from the 2004 Indian Ocean tsunami. Karim could not easily find video clips of either event online, which led to the idea of a video sharing site. Hurley and Chen said that the original idea for YouTube was a video version of an online dating service, and had been influenced by the website Hot or Not.