YouTube is pulling in plenty of dollars – 4 billion of them in 2014, up by a billion on 2013 – but it’s also spending it like there’s no tomorrow. People “familiar with its financials” told the Wall Street Journal this week that after forking out for original content and also the infrastructure to keep the whole shebang going, the company is just about breaking even.
With 76 million subscribers, controversial gaming vlogger PewDiePie, a.k.a. Felix Kjellberg, is the most popular individual on YouTube. In a since-edited video posted on December 9, he recommended a litany of YouTube channels he said he’d been enjoying recently, briefly mentioning a YouTube channel called “E;R,” noting that it produces “great video essays,” including “one on [the Netflix movie] Death Note which I really enjoyed.” He also linked to the channel in his video description. (The recommendation has since been edited out of the video.)
Estimates for YouTube's annual revenue, nearly all of which still comes from ads, vary a fair amount. But many of the estimates are now above $10 billion. At different points, Bank of America and Mizuho forecast that YouTube would post 2017 revenue of $13 billion and $12 billion, respectively. And in February, Baird's Colin Sebastian estimated YouTube is doing around $15 billion in annual sales.
Since PewDiePie’s December 9 video drew greater attention to the E;R channel, YouTube has reportedly suspended one of the creator’s videos and issued a strike against the account for violating the site’s community guidelines. The suspended video, which according to E;R had 2 million views at the time of its removal from YouTube, was ostensibly about Steven Universe — but it also contained four minutes of unedited footage of Hitler delivering a speech. YouTube has not yet responded to Vox’s request for comment.
Typically only offered to large YouTube channels with a wide audience (although not exclusively), another big way to earn cash through YouTube is to get sponsored deals with companies that will pay you to promote or mention their products in your videos. You can earn money this way either as a lump sum of cash the company will pay you for the deal, clicks on the company's link, or on a per-view basis.
ChuChu TV, the company responsible for some of the most widely viewed toddler content on YouTube, has a suitably cute origin story. Vinoth Chandar, the CEO, had always played around on YouTube, making Hindu devotionals and little videos of his father, a well-known Indian music producer. But after he and his wife had a baby daughter, whom they nicknamed “Chu Chu,” he realized he had a new audience—of one. He drew a Chu Chu–like character in Flash, the animation program, and then created a short video of the girl dancing to the popular and decidedly unwoke Indian nursery rhyme “Chubby Cheeks.” (“Curly hair, very fair / Eyes are blue, lovely too / Teacher’s pet, is that you?”)
^ 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.
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.
Another focus for the viral video platform has been supporting the many creators who have flocked there to create videos. Actress and comedian Grace Helbig, whose channel has 3 million subscribers, joined the site three years ago to start her show because of the creative freedom. “There are no gatekeepers,” said Helbig, who appeared onstage with Wojcicki.
On the other side lie many, many YouTube users who visit the site for other reasons and other forms of entertainment, and who arguably aren’t interested in supporting the cult of personalities that might be said to represent “old-school” YouTube. Instead, they come to the site for music, memes, narrative media, instructional videos, and more general forms of content consumption and entertainment.
On Thursday, the Senate voted unanimously to blame Crown Prince Mohammed bin Salman for the murder of the Saudi journalist Jamal Khashoggi, and 56 members—a clear majority—-cast votes to end U.S. support for the Saudi-led war effort in Yemen. The rebuke was followed shortly afterward by a revelation about the Defense Department’s refueling of that bombing campaign: According to the Pentagon, the department had somehow failed to bill the Saudis and the Emiratis for at least $331 million in fuel and servicing costs. The Saudis, it appears, never directly paid the U.S. a penny.
You're much more likely to build up revenue by getting an audience through regular content publishing, whether you're making vlogs, cat videos or just talking about custard creams.You might remember the tale of 17 year old Fred Pye - he hit the news a few years ago when he revealed he'd earned £24,000 a year by making walk-throughs for Grand Theft Auto.
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.
Absent substantive oversight by regulators, in the late 1960s the calls for change entered a new, more creative phase. A group calling itself Action for Children’s Television began advocating for specific changes to programming for young kids. The Corporation for Public Broadcasting was formed in 1968 with government dollars. At the same time, Children’s Television Workshop began producing Sesame Street, and the forerunner to PBS, National Educational Television, began distributing Mister Rogers’ Neighborhood. These shows were tremendously successful in creating genuinely educational television. By the time children’s programming got swept up into the growing cable industry, the big channels had learned a lot from the public model, which they incorporated into shows such as Dora the Explorer and Blue’s Clues.
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 June 2014, YouTube introduced videos playing at 60 frames per second, in order to reproduce video games with a frame rate comparable to high-end graphics cards. The videos play back at a resolution of 720p or higher. YouTube videos are available in a range of quality levels. The former names of standard quality (SQ), high quality (HQ), and high definition (HD) have been replaced by numerical values representing the vertical resolution of the video. The default video stream is encoded in the VP9 format with stereo Opus audio; if VP9/WebM is not supported in the browser/device or the browser's user agent reports Windows XP, then H.264/MPEG-4 AVC video with stereo AAC audio is used instead.
In 2013, the average cost per thousand (CPM) for YouTube was $7.60. CPM (cost per thousand) is an industry term that represents revenue per thousand views. In 2013, the average income for each YouTube content creator was $7.60 per every thousand views. A video with 500 views would have earned roughly $3.80. A video like Gangnam Style with a billion views would earn $7.8 million. Some videos earn a higher or lower than average rate depending on the video content. Videos containing copyrighted music do not earn revenue for the video creator, and some topics may not attract advertisers. Others have a strong draw from advertisers and drive up the CPM.
Apply to join the YouTube Partner Program when you feel confident in the interest and following your videos have garnered. There is no set following numbers needed to become a partner, but YouTube must see that your videos have interest and are growing a following before you're accepted. Sometimes YouTube will contact you directly about becoming a partner, especially if your videos have gone viral quickly. If not, you can apply on the YouTube partner page by entering personal information, describing a marketing plan, and defining your video genre.
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.
From the looks of things, YouTube's top-line growth hasn't been hurt much by worries among some companies -- for example, Cisco Systems (CSCO) , which just announced it's halting its YouTube ad spend -- about the running of their ads against content they find to be inappropriate. It also doesn't appear to have been hurt badly by YouTube's attempts to appease such advertisers by "demonetizing" videos that its algorithms deem unsuitable for running ads against, or the backlash such actions have sparked among affected content creators.
This is the latest move in the president’s long record of prioritizing harsh immigration and asylum restrictions, and one that’s sure to raise eyebrows—the White House had hesitantly backed off the plan in August before reversing course. In essence, the administration has now decided that Vietnamese immigrants who arrived in the country before the establishment of diplomatic ties between the United States and Vietnam are subject to standard immigration law—meaning they are all eligible for deportation.
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.
The first two steps in earning online revenue with YouTube is to open an account and turn on account monetization. Enabling monetization requires accepting YouTube’s advertising guidelines and connecting to an AdSense account for payment. Enabling ads on your YouTube videos requires agreeing to Google’s ad revenue share for YouTube. There is a 45/55 split for all content creators, so Google keeps 45 percent of all YouTube advertising on your videos, and you get the remaining 55 percent.
YouTube has a set of community guidelines aimed to reduce abuse of the site's features. Generally prohibited material includes sexually explicit content, videos of animal abuse, shock videos, content uploaded without the copyright holder's consent, hate speech, spam, and predatory behavior. Despite the guidelines, YouTube has faced criticism from news sources for content in violation of these guidelines.
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.
Much of YouTube's revenue goes to the copyright holders of the videos. In 2010, it was reported that nearly a third of the videos with advertisements were uploaded without permission of the copyright holders. YouTube gives an option for copyright holders to locate and remove their videos or to have them continue running for revenue. In May 2013, Nintendo began enforcing its copyright ownership and claiming the advertising revenue from video creators who posted screenshots of its games. In February 2015, Nintendo agreed to share the revenue with the video creators.
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.
All YouTube users can upload videos up to 15 minutes each in duration. Users who have a good track record of complying with the site's Community Guidelines may be offered the ability to upload videos up to 12 hours in length, as well as live streams, which requires verifying the account, normally through a mobile phone. When YouTube was launched in 2005, it was possible to upload longer videos, but a ten-minute limit was introduced in March 2006 after YouTube found that the majority of videos exceeding this length were unauthorized uploads of television shows and films. The 10-minute limit was increased to 15 minutes in July 2010. In the past, it was possible to upload videos longer than 12 hours. Videos can be at most 128 GB in size. Video captions are made using speech recognition technology when uploaded. Such captioning is usually not perfectly accurate, so YouTube provides several options for manually entering the captions for greater accuracy.