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.
How does a video streaming service with one billion active users per month and $4 billion in revenue not turn a profit? Ask YouTube, which couldn't break free from breaking even in 2014, according to a new report. Sources tell the Wall Street Journal that Google's video unit posted $4 billion in revenue last year, up from $3 billion in 2013, and that while the service accounted for 6 percent of Google's overall sales, it contributed nothing to earnings.
In May 2011, 48 hours of new videos were uploaded to the site every minute, which increased to 60 hours every minute in January 2012, 100 hours every minute in May 2013, 300 hours every minute in November 2014, and 400 hours every minute in February 2017. As of January 2012, the site had 800 million unique users a month. It is estimated that in 2007 YouTube consumed as much bandwidth as the entire Internet in 2000. According to third-party web analytics providers, Alexa and SimilarWeb, YouTube is the second-most visited website in the world, as of December 2016; SimilarWeb also lists YouTube as the top TV and video website globally, attracting more than 15 billion visitors per month. In October 2006, YouTube moved to a new office in San Bruno, California.
Surf around YouTube and click through the most-viewed video clips to get an idea of the types of videos that garner the most hits. Everything from original music to product reviews, pranks, and even video blogs create interest on YouTube. The goal is to create an audience, so use your webcam or digital video camera to garner interest. Remember that YouTube does not allow pornographic images, nor can you make money from cover songs to which you do not own the rights.
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.
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."
If so, Frank Knoll’s YouTube Profits – No Filming, No Money Needed: Be Anywhere and Make Big Profits is the book for you! You’ll find out how to manage and update your YouTube videos, promote them, and make money with Google AdSense. Frank provides detailed, step-by-step instructions for setting up accounts, adjusting settings, and linking to payment sites! All this without having any video of your own at all!
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. The new system restored the ability to include URLs in comments, which had previously been removed due to problems with abuse. 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. The official YouTube announcement received 20,097 "thumbs down" votes and generated more than 32,000 comments in two days. 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:
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.
3. Check out YouTube Red: AdSense isn’t the only way partners can make money on YouTube. You can also make videos available on YouTube Red, which is the site’s ad-free subscription service. And if you have more than 1,000 active subscribers, you can put videos behind a paywall and enable Super Chat, which lets viewers pay to have their messages highlighted during a live stream. To use that feature, partners have to be older than 18.
To be clear, it’s hard to make videos that very young children can learn from. (Johnson’s doctoral adviser, Georgene Troseth, was part of the team that demonstrated this.) Children under 2 struggle to translate the world of the screen to the one they see around them, with all its complexity and three-dimensionality. That’s why things like Baby Einstein have been debunked as educational tools. Most important for kids under 2 is rich interaction with humans and their actual environments. Older toddlers are the ones who can get something truly educational from videos, as opposed to just entertainment and the killing of time.
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.
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.
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.
YouTube allows users to upload, view, rate, share, add to favorites, report, comment on videos, and subscribe to other users. It offers a wide variety of user-generated and corporate media videos. Available content includes video clips, TV show clips, music videos, short and documentary films, audio recordings, movie trailers, live streams, and other content such as video blogging, short original videos, and educational videos. Most of the content on YouTube is uploaded by individuals, but media corporations including CBS, the BBC, Vevo, and Hulu offer some of their material via YouTube as part of the YouTube partnership program. Unregistered users can only watch videos on the site, while registered users are permitted to upload an unlimited number of videos and add comments to videos. Videos deemed potentially inappropriate are available only to registered users affirming themselves to be at least 18 years old.