In late November 2018, YouTube announced that it would introduce a "Story" feature, similar to ones used by Instagram, Snapchat and Facebook, which would allow its content creators to engage fans without posting a full video.[119] The stories, called "Reels," would be up to 30 seconds in length and would allow users to add "filters, music, text and more, including new "YouTube-y" stickers." Unlike those of other platforms, YouTube's stories could be made multiple times and would not expire. Instead of being placed at the top of the user interface as is commonly done, the "Reels" option would be featured as a separate tab on the creator's channel.[120] As of its announcement, only certain content creators would have access to the "Reels" option, which would be utilized as a beta-version for further feedback and testing. If users engage more with the "Reels" option, it may end up as a more permanent feature and "trigger their appearance on the viewer's YouTube home page as recommendations." As of November 28, 2018, Youtube did not specify when "Reels" would arrive in Beta or when it would be publicly released.[119]
All the estimates by research firms and analysts, says Kirjner, are "based more on belief and anecdotes than on truly representative data. What's more -- beyond anecdotes either shared by Google or collected through discussions with ad buyers, creators and multichannel network operators -- we know very little about what is available on YouTube, what people watch and how much it gets watched."
If your end goal is to actually make money from videos, there’s a far better option than simply relying on your measly allocation of ad revenue. Instead, create a YouTube channel and build an audience. The primary goal is to engage this audience and build a brand name. Then, once you've established a reputation, begin driving traffic to your own landing pages where you can up-sell viewers with premium video content.
Because of the time you're allotted with this ad format, it's suggested that you create this type of ad with the goal of views and brand development, rather than just clicks into your website. This ad ideally generates revenue from the long-term brand awareness that comes out of a story people don't want to skip, and one viewers remember the next time they approach your product or service.
YouTube has focused on developing online personalities such as video game player PewDiePie, music video specialist Smosh and style guru Michelle Phan. Driving much of the traffic to YouTube, analysts say, are multichannel networks such as Fullscreen, Maker Studios, SonyBMG and Whistle Sports. Google has bought stakes in multichannel networks such as Vevo and Machinima, analysts say, to ensure their content stays on its website.

There was some backlash over these new benchmarks, but frankly, the vast majority of people who lost their monetization privileges weren’t earning much anyway. Most channels make somewhere between $1.50 and $3 per thousand views, depending on their content and audience, and Google won’t even cut a paycheck for under $100 (or roughly 50,000 views — a pretty tall order for the average 14-year-old posting eyeliner tutorials). In other words, if you were looking for an easy side gig, YouTube was never the efficient choice.

The outcry against PewDiePie’s recommendation of the channel was immediate, with media outlets and other YouTuber users citing it as an example of PewDiePie’s ongoing dalliance in alt-right culture. In response, PewDiePie released a follow-up video on December 11 in which he sarcastically described the incident as an “oopsie” and scoffed at the idea that he was promoting neo-Nazism by merely “recommending someone for their anime review.”

The 1990s and 2000s saw the growth of cable TV channels targeted at children. With the rise of ubiquitous merchandising deals and niche content, powerful American media companies such as Disney, Turner, and Viacom figured out how to make money off young kids. They created, respectively, the Disney Channel, the Cartoon Network, and, of course, Nickelodeon, which was the most watched cable channel during traditional television’s peak year, 2009–10 (Nielsen’s measurement period starts and ends in September). Since then, however, little kids have watched less and less television; as of last spring, ratings in 2018 were down a full 20 percent from just last year. As analysts like to put it, the industry is in free fall. The cause is obvious: More and more kids are watching videos online.
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.
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Knowing who you are and, perhaps more importantly, who your audience is will make you attractive to advertisers, sponsors and partners outside the YouTube sphere, experts say. Make sure to also set yourself up as someone who is "brand safe," says Tyler Vaught, head of Niche, Twitter's service that connects creators worldwide with brands to develop branded content. That could mean not using profanities, avoiding charged political topics and dodging drug references and other controversial topics on your channel.
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Next let’s break down the types of advertisements on YouTube. You’re probably familiar with them if you watch any amount of YouTube videos. There’s the bottom text based ad that is displayed at the bottom of your video, and then there is the clip that plays at the beginning of your video. You can select which of these ads your video can have, and it might make a difference depending on your audience or how much revenue your video brings in.
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After all, relatability is a YouTuber’s greatest asset — along with a willingness to keep plugging away. “If you’re passionate about it, you really increase your chances of success,” says Asano. “It’s a lot of work. To produce just one video, you need camera equipment, a computer to edit it on, and time. And if you’re just starting out, you’re not going to get paid for a while because you need to build your subscribers. Don’t do it because you think you’re going to make an easy buck, because it’s not.”

Individuals and businesses make millions of dollars through YouTube advertising, but there are risks to using a platform controlled by another company. Not only is there a chance that a change in Google's search algorithms could make or break video traffic, but Google also takes a hefty 45 percent cut of revenue from video advertising. Nevertheless, YouTube is a massive platform and is the world's second largest search engine after Google, which includes YouTube videos in search results. If the benefits of reaching YouTube's large audience and having Google handle the most labor-intensive parts of building an advertising network outweigh the costs and risks, this platform is a great resource for turning videos into cash.
It's worth noting here that even Twitter (TWTR) , which is seeing minuscule monthly user and ad revenue growth, is valued at more than seven times its 2018 revenue consensus. And Snap (SNAP) , which (though seeing strong revenue growth) is contending with slowing user growth and faces big questions about its long-term profitability, is worth over 11 times its 2018 revenue consensus.

In April 2013, it was reported that Universal Music Group and YouTube have a contractual agreement that prevents content blocked on YouTube by a request from UMG from being restored, even if the uploader of the video files a DMCA counter-notice. When a dispute occurs, the uploader of the video has to contact UMG.[330][331] YouTube's owner Google announced in November 2015 that they would help cover the legal cost in select cases where they believe fair use defenses apply.[332]
Individuals and businesses make millions of dollars through YouTube advertising, but there are risks to using a platform controlled by another company. Not only is there a chance that a change in Google's search algorithms could make or break video traffic, but Google also takes a hefty 45 percent cut of revenue from video advertising. Nevertheless, YouTube is a massive platform and is the world's second largest search engine after Google, which includes YouTube videos in search results. If the benefits of reaching YouTube's large audience and having Google handle the most labor-intensive parts of building an advertising network outweigh the costs and risks, this platform is a great resource for turning videos into cash.

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.

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."
So, predictably, by the time it was 10 a.m., I had made and consumed two cups of coffee, taken out the trash, cleaned my room while taking a deliberately slow approach to folding my shirts, gone on a walk outside to clear my head, had a thing of yogurt and fruit to reward the physical exertion, sent an email to my aunt and sister, read about 100 Tweets (favorited three; written and deleted one), despaired at my lack of progress, comforted myself by eating a second breakfast, opened several tabs from on my browser ... and written absolutely nothing.
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 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.

If hookups are your thing, Grindr and Tinder offer the prospect of casual sex within the hour. The phrase If something exists, there is porn of it used to be a clever internet meme; now it’s a truism. BDSM plays at the local multiplex—but why bother going? Sex is portrayed, often graphically and sometimes gorgeously, on prime-time cable. Sexting is, statistically speaking, normal.
In re: your second point, getting users to pay for content is absolutely part of the equation, but not the entire equation. The whole other half of it is creating ways to minimize the cut a middleman takes such that even if it’s zero sum game, more of the sum is going to the content creators, as well as developing new revenue streams that don’t require a direct cost from users to give direct profit to content creators.
Have you ever watched a YouTube star’s video and thought, I could’ve done that? Me neither. Out of all the influencer platforms, YouTube strikes me as the most intimidating. But it can also be the most lucrative, with top YouTubers earning well into the six figures from advertising revenue alone. And this pie is only getting expanding: YouTube recently reported that the number of users earning over $100,000 on the platform has increased by more than 40 percent annually; currently, 75 percent more channels have surpassed a million subscribers versus last year.
This is partly because he was a creature of his era, born in the 1920s and active in an age when the whole argot was different. But he lived until 2011, well into the age of LGBTQ. He had plenty of time to make peace with the term, but his friends say he abjured it. “My recollection is LGBT or its derivatives were expressly disliked by Frank,” one of them told me. “He would use gay to cover the full range; or gay and lesbian.” Another said: “Frank was quite indignant about the alphabet soup. When it started in the ’80s with gay and lesbian, he correctly predicted that there would be no end of it.”
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.)
In May 2014, before Music Key service was launched, the independent music trade organization Worldwide Independent Network alleged that YouTube was using non-negotiable contracts with independent labels that were "undervalued" in comparison to other streaming services, and that YouTube would block all music content from labels who do not reach a deal to be included on the paid service. In a statement to the Financial Times in June 2014, Robert Kyncl confirmed that YouTube would block the content of labels who do not negotiate deals to be included in the paid service "to ensure that all content on the platform is governed by its new contractual terms." Stating that 90% of labels had reached deals, he went on to say that "while we wish that we had [a] 100% success rate, we understand that is not likely an achievable goal and therefore it is our responsibility to our users and the industry to launch the enhanced music experience."[215][216][217][218] The Financial Times later reported that YouTube had reached an aggregate deal with Merlin Network—a trade group representing over 20,000 independent labels, for their inclusion in the service. However, YouTube itself has not confirmed the deal.[209]
According to ChuChu, its two largest markets are the United States and India, which together generate about one-third of its views. But each month, tens of millions of views also pour in from the U.K., Canada, Mexico, Australia, and all over Asia and Africa. Roughly 20 million times a day, a caretaker somewhere on Earth fires up YouTube and plays a ChuChu video. What began as a lark has grown into something very, very big, inflating the company’s ambitions. “We want to be the next Disney,” Chandar told me.
If your end goal is to actually make money from videos, there’s a far better option than simply relying on your measly allocation of ad revenue. Instead, create a YouTube channel and build an audience. The primary goal is to engage this audience and build a brand name. Then, once you've established a reputation, begin driving traffic to your own landing pages where you can up-sell viewers with premium video content.
In any case, if you have incontrovertible evidence that YouTube is actually unprofitable today, and why that is (i.e. is it because they’re just investing all that profit back into growth, or are their upkeep costs truly just on the order of multiple billions of dollars?), would love to see it and adjust this accordingly. Doesn’t really change any of the points made though.
Advertising rates -- Online media in general has had major problems with ad revenue. Even though video ads pay better than banners or other text ads, advertisers only want to be charged for people who actually see the ads. The question of verifying the actual audience that saw an ad is a thorny one. Older media like print and television were hugely profitable in their heydays because they never had to show that the audiences they claimed were ever truly realized by advertisers.
“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.
You will first have to build up your YouTube platform to gain more followers. While it is by no means a science to instantly get thousands of subscribers or views, by posting frequently, promoting your videos, and paying attention to engagement and demographics, you can see what performs well and curate your content to what your viewers seem to like. 
How many views does it take to make money on YouTube?  This is a common question asked and it really depends on who you ask.  You may have heard that you’ll make one dollar per thousand views or that it’s $1,000 per Million Views.  Some say it’s $5 per thousand views.  Well, we’re asking the wrong question.  We should be asking, “How much ENGAGEMENT does it take to make money on YouTube?”

YouTube featured an April Fools prank on the site on April 1 of every year from 2008 to 2016. In 2008, all links to videos on the main page were redirected to Rick Astley's music video "Never Gonna Give You Up", a prank known as "rickrolling".[236][237] The next year, when clicking on a video on the main page, the whole page turned upside down, which YouTube claimed was a "new layout".[238] In 2010, YouTube temporarily released a "TEXTp" mode which transformed colors in videos to random uppercase letters "in order to reduce bandwidth costs by $1 per second."[239] The next year, the site celebrated its "100th anniversary" with a range of sepia-toned silent, early 1900s-style films, including a parody of Keyboard Cat.[240] In 2012, clicking on the image of a DVD next to the site logo led to a video about a purported option to order every YouTube video for home delivery on DVD.[241] In 2013, YouTube teamed up with satirical newspaper company The Onion to claim that the video sharing website was launched as a contest which had finally come to an end, and would announce a winner of the contest when the site went back up in 2023.[242] In 2014, YouTube announced that it was responsible for the creation of all viral video trends, and revealed previews of upcoming internet memes, such as "Clocking", "Kissing Dad", and "Glub Glub Water Dance".[243] The next year, YouTube added a music button to the video bar that played samples from "Sandstorm" by Darude.[244] In 2016, YouTube introduced an option to watch every video on the platform in 360-degree mode with Snoop Dogg.[245]