All that money is providing Google with more financial firepower to buy the rights to stream cable networks' shows on YouTube, too, which is likely to reel in even more viewers. It also is helping finance Alphabet's investments in projects such as self-driving cars and Internet-beaming balloons. That segment, known as Other Bets, lost $865 million during the July-September period, narrowing from a $980-million setback last year as Alphabet imposed more expense controls.
YouTube entered into a marketing and advertising partnership with NBC in June 2006. In March 2007, it struck a deal with BBC for three channels with BBC content, one for news and two for entertainment. In November 2008, YouTube reached an agreement with MGM, Lions Gate Entertainment, and CBS, allowing the companies to post full-length films and television episodes on the site, accompanied by advertisements in a section for U.S. viewers called "Shows". The move was intended to create competition with websites such as Hulu, which features material from NBC, Fox, and Disney. In November 2009, YouTube launched a version of "Shows" available to UK viewers, offering around 4,000 full-length shows from more than 60 partners. In January 2010, YouTube introduced an online film rentals service, which is only available to users in the United States, Canada, and the UK as of 2010. The service offers over 6,000 films.
YouTube also has a more democratic appeal. Unlike Instagram, where the biggest influencers are mainstream megastars in their own right (Selena Gomez, Ariana Grande, Beyoncé), YouTube is dominated by homegrown celebrities, such as Jenna Mourey (a.k.a. Jenna Marbles), Mariand Castrejón Castañeda (a.k.a. Yuya, a Mexican beauty vlogger), and a bunch of gamers that I’ve never heard of but have millions of fans. The world’s highest-paid YouTube star is Daniel Middleton, a British 26-year-old who goes by “DanTDM” and gained his fortune (an estimated annual income of $16.5 million, per Forbes) by posting videos of himself playing Minecraft. Last year, he did an international tour that included four sold-out nights at the Sydney Opera House.
You’ve probably heard stories about regular people earning money on YouTube and thought, “Hey, I can do this too!”. While earning thousands of dollars probably isn’t realistic, you can start earning money quickly, especially if you have a strong subscriber base. Follow this guide to get your videos monetized and start earning revenue off of those YouTube ads.
But even in relatively limited doses, these videos can affect young toddlers’ development. If kids watch a lot of fast-paced videos, they come to expect that that is how videos should work, which could make other educational videos less compelling and effective. “If kids get used to all the crazy, distracting, superfluous visual movement, then they may start requiring that to hold their attention,” Johnson says.
User entitlement -- A key to the plan of scaling up and eventually figuring out how to make money is free services for users. The minute you charge people, most walk off, particularly when they've been trained to assume that services should be free. YouTube has clearly told people that they should expect free video streaming, even if it has considered an ad-free paid subscription service. Getting consumers to change their behavior after they've become used to not paying is next to impossible.
Google does not provide detailed figures for YouTube's running costs, and YouTube's revenues in 2007 were noted as "not material" in a regulatory filing. In June 2008, a Forbes magazine article projected the 2008 revenue at $200 million, noting progress in advertising sales. In January 2012, it was estimated that visitors to YouTube spent an average of 15 minutes a day on the site, in contrast to the four or five hours a day spent by a typical US citizen watching television. In 2012, YouTube's revenue from its ads program was estimated at $3.7 billion. In 2013 it nearly doubled and estimated to hit $5.6 billion according to eMarketer, while others estimated $4.7 billion. The vast majority of videos on YouTube are free to view and supported by advertising. In May 2013, YouTube introduced a trial scheme of 53 subscription channels with prices ranging from $0.99 to $6.99 a month. The move was seen as an attempt to compete with other providers of online subscription services such as Netflix and Hulu. In 2017, viewers on average watch YouTube on mobile devices for more than an hour every day.