After Krishnan rewrote a nursery rhyme, Chandar would then take the lyrics and compose music around them. The songs are simple, but if you hear them once, you will hear them for the rest of your life. Krishnan would storyboard the videos, imagining the sequence of shots, as befitting his youthful dream of becoming a movie director. ChuChu productions are essentially music videos for kids, sometimes featuring Tollywood dance moves that Chandar and Krishnan demonstrate for the animators.
This might not exactly seem like a tragedy. After all, Americans watch a lot of TV. By the time Nielsen began recording how much time Americans spent in front of TV screens in 1949–50, each household was already averaging four hours and 35 minutes a day. That number kept going up, passing six hours in 1970–71, seven hours in 1983–84, all the way up to eight hours in 2003–04. Viewing finally peaked at eight hours and 55 minutes in 2009–10. Since then, the numbers have been gliding downward, with the most recent data showing Americans’ viewing habits edging under eight hours a day for the first time since George W. Bush’s presidency.

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.
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On September 13, 2016, YouTube launched a public beta of Community, a social media-based feature that allows users to post text, images (including GIFs), live videos and others in a separate "Community" tab on their channel.[121] Prior to the release, several creators had been consulted to suggest tools Community could incorporate that they would find useful; these YouTubers included Vlogbrothers, AsapScience, Lilly Singh, The Game Theorists, Karmin, The Key of Awesome, The Kloons, Peter Hollens, Rosianna Halse Rojas, Sam Tsui, Threadbanger and Vsauce3.[122]
Once you link your AdSense account to your YouTube account, you will receive credit for each video’s monthly revenue. Once you accumulate $100 in earnings, Google will issue a payment to your bank account. You can choose to be paid via direct deposit (not available in all countries) or check—direct deposit is the fastest method and has no fee. If you are located in the United States and earn more than $600 per year, Google will issue a 1099 form. Either way, you are required to pay income tax on your earnings.
Until last month, pretty much any random person could enable the “monetization” setting on their YouTube account and get ads on their videos, allowing them to earn a fraction of a cent for every time a person viewed or clicked on their content. That all changed in January, however, when Google (YouTube’s owner) announced new standards to merit those ads. Now, to be accepted into the “YouTube Partner Program” and monetize your channel, you need a minimum of 1,000 subscribers and 4,000 hours of watch-time over the past 12 months; your videos will also be more closely monitored for inappropriate content. Meanwhile, YouTube also promised that members of “Google Preferred” — a vaunted group of popular channels that make up YouTube’s top 5 percent, and command higher ad dollars because of it — will be more carefully vetted. (These shifts followed the Logan Paul controversy, as well as a brouhaha about ads running on unsavory content, such as sexually explicit or extremist videos.)
The men know this with quantitative precision. YouTube analytics show exactly when a video’s audience falls off. ChuChu and other companies like it—whatever their larger philosophy—can see exactly what holds a toddler’s attention, moment by moment, and what causes it to drift. If a video achieves a 60 percent average completion rate, ChuChu knows it has a hit. Using these data doesn’t let it “crack the algorithm”; everyone has access to a version of these numbers. Instead, Chandar uses the analytics to tune his and other creators’ intuition about what works.
But there is something the company could do immediately to improve the situation. YouTube knows that I—and tens of millions of other people—have watched lots of videos made for toddlers, but it has never once recommended that I switch to YouTube Kids. Think of how hard Facebook works to push users from Instagram onto Facebook and vice versa. Why not try to get more families onto the YouTube Kids app? (Malik Ducard, YouTube’s global head of family and learning, said in a statement that YouTube has “worked hard to raise awareness of the YouTube Kids app through heavy promotion. These promos have helped drive our growth. Today, YouTube Kids has over 14 million weekly viewers and over 70 billion views.”)
On November 3, 2016, YouTube announced a trial scheme which allows the creators of videos to decide whether to approve, hide or report the comments posted on videos based on an algorithm that detects potentially offensive comments.[391] Creators may also choose to keep or delete comments with links or hashtags in order to combat spam. They can also allow other users to moderate their comments.[392]
Like any good mogul, Fischbach is diversifying: In October, he cofounded an athleisure line, Cloak, with fellow list member Seán McLoughlin, better known as “Jacksepticeye” (No. 8, $16 million). The workout line includes $85 sweaters and $35 T-shirts. Even if they intend to exercise nothing more than their thumbs, fans have snapped the gear up: The presale items sold out in 48 hours. 

In March 2017, the government of the United Kingdom pulled its advertising campaigns from YouTube, after reports that its ads had appeared on videos containing extremism content. The government demanded assurances that its advertising would "be delivered in a safe and appropriate way". The Guardian newspaper, as well as other major British and U.S. brands, similarly suspended their advertising on YouTube in response to their advertising appearing near offensive content. Google stated that it had "begun an extensive review of our advertising policies and have made a public commitment to put in place changes that give brands more control over where their ads appear".[356][357] In early April 2017, the YouTube channel h3h3Productions presented evidence claiming that a Wall Street Journal article had fabricated screenshots showing major brand advertising on an offensive video containing Johnny Rebel music overlaid on a Chief Keef music video, citing that the video itself had not earned any ad revenue for the uploader. The video was retracted after it was found that the ads had actually been triggered by the use of copyrighted content in the video.[358][359]


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.
Of course, influencers have their own interests to look out for, too. “The process of creating a brand campaign is holistic, and the cost is not standard,” says Natalie Alzate, the woman behind NataliesOutlet, a YouTube channel with almost 6 million followers. “My manager, agent, and attorney work hard to ensure that each campaign is a success, which is measured by whether the fans respond to it as well they do to non-sponsored content.”

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.[54] 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.[55] In May 2013, YouTube launched a pilot program for content providers to offer premium, subscription-based channels within the platform.[56][57] In February 2014, Susan Wojcicki was appointed CEO of YouTube.[58] 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.[59]
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