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.
At the time of uploading a video, YouTube users are shown a message asking them not to violate copyright laws.[313] Despite this advice, there are still many unauthorized clips of copyrighted material on YouTube. YouTube does not view videos before they are posted online, and it is left to copyright holders to issue a DMCA takedown notice pursuant to the terms of the Online Copyright Infringement Liability Limitation Act. Any successful complaint about copyright infringement results in a YouTube copyright strike. Three successful complaints for copyright infringement against a user account will result in the account and all of its uploaded videos being deleted.[314][315] Organizations including Viacom, Mediaset, and the English Premier League have filed lawsuits against YouTube, claiming that it has done too little to prevent the uploading of copyrighted material.[316][317][318] Viacom, demanding $1 billion in damages, said that it had found more than 150,000 unauthorized clips of its material on YouTube that had been viewed "an astounding 1.5 billion times". YouTube responded by stating that it "goes far beyond its legal obligations in assisting content owners to protect their works".[319]
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.

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.
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.
The idea of making millions off of videos the way YouTubers like PewDiePie famously have certainly seems like a pseudo-new-American Dream. And while not all of us will reach internet stardom with our videos, it might be worth looking into how you could make a few dimes from the popular platform. So, how do you make money from YouTube, and what will you need? 
Later that year, YouTube came under criticism for showing inappropriate videos targeted at children and often featuring popular characters in violent, sexual or otherwise disturbing situations, many of which appeared on YouTube Kids and attracted millions of views. The term "Elsagate" was coined on the Internet and then used by various news outlets to refer to this controversy.[366][367][368][369] On November 11, 2017, YouTube announced it was strengthening site security to protect children from unsuitable content. Later that month, the company started to mass delete videos and channels that made improper use of family friendly characters. As part as a broader concern regarding child safety on YouTube, the wave of deletions also targeted channels which showed children taking part in inappropriate or dangerous activities under the guidance of adults. Most notably, the company removed Toy Freaks, a channel with over 8.5 million subscribers, that featured a father and his two daughters in odd and upsetting situations.[370][371][372][370][373][374] According to analytics specialist SocialBlade, it earned up to £8.7 million annually prior to its deletion.[375]

Next up you’ll want to become a YouTube Partner. This isn’t as hard as it used to be. In the past, to become a YouTube partner you had to have some 15,000 hours of your video watched at any point in time. The benefit here is that you can upload more than 15 minutes of video, which may help on some video projects. You also get analytics tools and some more advanced editing tools.


Nobody likes content interrupted, commercials are at least half of why I stopped watching TV shows on TV. Besides a majority of youtube videos are ~2-5 minutes long, a 30 second ad is too long as a % of total time. Internet ads for video tend to serve the same ad repeatedly which is a big mistake. Our privacy will be sacrificed for targeted ads here too I’m sure.
Observers speculate Google has sought streaming rights to on-demand TV shows and movies to bolster YouTube Red, its new subscription service. Some media reports suggest Google could go a step further and buy rights to live TV channels, making it a more direct foe of pay TV providers such as Comcast (CMCSA), AT&T (T) and Verizon Communications (VZ). Google is usually mentioned when broadcasting rights to major sports are up for grabs.
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?”)
ChuChu’s founders aren’t blind to the power of new-media platforms, or the undertow of crappy YouTube producers, or the addictive power of devices, but the magnitude and improbability of their success more than balance the scales. They don’t quite seem to know why (or how, exactly) they’ve been given this opportunity to speak to millions from an office in South India, but they’re not going to throw away the chance. After all, there are so many stories to tell.
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.
ChuChu’s founders aren’t blind to the power of new-media platforms, or the undertow of crappy YouTube producers, or the addictive power of devices, but the magnitude and improbability of their success more than balance the scales. They don’t quite seem to know why (or how, exactly) they’ve been given this opportunity to speak to millions from an office in South India, but they’re not going to throw away the chance. After all, there are so many stories to tell.
What kind of sales multiple does this fast-growing video juggernaut deserve? It's tough to think of a direct comparison. Netflix, which trades for over eight times its 2018 revenue consensus, relies on subscription revenue rather than ads. And whereas YouTube largely relies on ad revenue-sharing deals with content partners, Netflix directly pays its content partners for their material.
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.[279] In June 2008, a Forbes magazine article projected the 2008 revenue at $200 million, noting progress in advertising sales.[280] 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.[28] In 2012, YouTube's revenue from its ads program was estimated at $3.7 billion.[281] In 2013 it nearly doubled and estimated to hit $5.6 billion according to eMarketer,[281][282][283] while others estimated $4.7 billion.[281] The vast majority of videos on YouTube are free to view and supported by advertising.[56] In May 2013, YouTube introduced a trial scheme of 53 subscription channels with prices ranging from $0.99 to $6.99 a month.[284] The move was seen as an attempt to compete with other providers of online subscription services such as Netflix and Hulu.[56] In 2017, viewers on average watch YouTube on mobile devices for more than an hour every day.[285]
Merchandise has become an increasingly important revenue stream for these top digital stars, almost all of whom (No. 1 being a notable exception) are in their 20s and 30s. Each of the 10 on our list now has a line of merchandise, whose blossoming sales help account for that 42% income increase from a year ago. “I’ve built this huge community, and we’ve made a lot of people laugh,” says Fischbach, who sees Cloak as the first step toward an empire built on assets more tangible than video uploads. For now, though, all those gaming clips serve as a force multiplier for the man known as Markiplier. Like any savvy businessman, he’s thinking ahead. “I’m not going to be able to make videos on YouTube forever,” he says. “I need to plan for the future.” 
Not to put too fine a point on it, but this is almost precisely the problem that the rest of the media world finds itself in. Because quality is hard to measure, the numbers that exist are the ones that describe attention, not effect: views, watch time, completion rate, subscribers. YouTube uses those metrics, ostensibly objectively, when it recommends videos. But as Theodore Porter, the great historian of science and technology, put it in his book Trust in Numbers, “Quantification is a way of making decisions without seeming to decide.”

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.


Should PewDiePie have known better? His critics say yes; though he has been dismissive about the uproar, this is far from the first time he has dabbled in alignment with alt-right beliefs, and he’s previously faced backlash for this type of incident so many times that it now seems more than a little intentional. But PewDiePie and his supporters say his critics are overreacting to a harmless mistake — all while tens of thousands of new subscribers have followed the anti-Semitic channel based on PewDiePie’s brief endorsement.
I worry about these questions a lot, and I wonder if our 21st-century American institutions are up to the challenges they’ve created with their market successes and ethical abdications. Even so, when I visited Chennai, I felt okay about the media future we’re heading into. The toddler videos that ChuChu is posting on YouTube are cultural hybrids, exuberant and cosmopolitan, and in a philosophical sense they presuppose a world in which all children are part of one vast community, drawing on the world’s collective heritage of storytelling. That’s a rich narrative rootstock, with lots of lessons to teach—and right now who’s better poised to make the most of it than ChuChu and companies like it, especially if they can learn from the legacy of American educational TV?
For other YouTube creators, ad dollars only go so far, and a significant portion of revenue comes from sponsorships and “affiliate marketing” (when brands offer a commission on any sales or traffic that the creator’s content drives). Affiliates function pretty seamlessly through YouTube; anyone can include links to featured products in their video’s caption, and when audience members click through and buy them, that YouTube channel gets a small kickback. Many YouTubers prefer Amazon’s affiliate program, “Amazon associates,” although there are plenty more to choose from.
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?”)
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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.
Pakistan blocked access on February 23, 2008, because of "offensive material" towards the Islamic faith, including display of the Danish cartoons of Muhammad.[415] This led to a near global blackout of the YouTube site for around two hours, as the Pakistani block was inadvertently transferred to other countries. On February 26, 2008, the ban was lifted after the website had removed the objectionable content from its servers at the request of the government.[416][417] Many Pakistanis circumvented the three-day block by using virtual private network software.[418] In May 2010, following the Everybody Draw Mohammed Day, Pakistan again blocked access to YouTube, citing "growing sacrilegious content".[419] The ban was lifted on May 27, 2010, after the website removed the objectionable content from its servers at the request of the government. However, individual videos deemed offensive to Muslims posted on YouTube will continue to be blocked.[420][421] Pakistan again placed a ban on YouTube in September 2012, after the site refused to remove the film Innocence of Muslims, with the ban still in operation as of September 2013.[422] The ban was lifted in January 2016 after YouTube launched a Pakistan-specific version.[423]

And throughout many videos focused on Steven Universe, E;R presents the show’s characters as analogues for Jewish people, coding them with anti-Semitic stereotypes. In one such video, he portrays one character as a deceptive tool for a global Jewish conspiracy, as indicated by a montage of public figures and businessmen, and then ends the video with an altered version of a white supremacist slogan known as the “14 words.”
This means that if someone skips an ad, or is running an ad blocker, then you don’t get paid for that view. This makes estimating the amount of views a video has and how much a user makes off of the video very challenging. It also depends if it’s a video ad at the front of your video, or just a box at the bottom of your page; this determines how many people interact with your ad and the amount of money that can be made.
For any well-meaning kids’ producer, one model to look to for inspiration is Fred Rogers—PBS’s Mister Rogers. Rogers didn’t have any deep academic background in children’s development, but early on, he grasped the educational possibilities of the new medium, and in the 15 years between the first children’s show he produced and the national premiere of Mister Rogers’ Neighborhood, he worked constantly to make it better for kids. ChuChu could well be going through a similar stage now. Founded just five years ago, it’s encountering a different, and tougher, media landscape than Rogers did—but his path is still worth following.

This indirect, dog-whistle form of alt-right messaging is common for the channel, which deliberately uses pop culture imagery, mainly drawn from animated series like Death Note and in particular the Cartoon Network TV series Steven Universe, as a tool for spreading white supremacist propaganda. Some of the many examples littering the channel’s videos include frequent references to media creators and other public figures using the historically loaded slur “Jews,” and references to anti-Semitic conspiracy phraseology such as “the Jewish question,” a frequent alt-right dog whistle that refers to the “Endlösung der Judenfrage” — German for “Final Solution to the Jewish Question” and the official Nazi code language for planning and carrying out the Holocaust.
At the same time, YouTube is moving to develop subscription services. In November, YouTube announced a music-subscription service, similar to Spotify, that will offer ad-free listening and other tools for $10 a month. YouTube executives have discussed another subscription offering for non-music content, according to one industry official, which would be in addition to its existing ad-supported service.
Frank Knoll will teach you everything you need to know to make massive profits on YouTube. In YouTube Profits, he describes how to post videos, write compelling SEO descriptions, add annotations, and attract viewers to your content. You’ll discover various types of ads you can use, such as overlay ads, sponsored cards, or skippable video ads. Frank explains the marketing tools you need to promote your YouTube channel, get more views, and attract more subscribers!
The online-video unit posted revenue of about $4 billion in 2014, up from $3 billion a year earlier, according to two people familiar with its financials, as advertiser-friendly moves enticed some big brands to spend more. But while YouTube accounted for about 6% of Google’s overall sales last year, it didn’t contribute to earnings. After paying for content, and the equipment to deliver speedy videos, YouTube’s bottom line is “roughly break-even,” according to a person with knowledge of the figure.

During the same court battle, Viacom won a court ruling requiring YouTube to hand over 12 terabytes of data detailing the viewing habits of every user who has watched videos on the site. The decision was criticized by the Electronic Frontier Foundation, which called the court ruling "a setback to privacy rights".[320][321] In June 2010, Viacom's lawsuit against Google was rejected in a summary judgment, with U.S. federal Judge Louis L. Stanton stating that Google was protected by provisions of the Digital Millennium Copyright Act. Viacom announced its intention to appeal the ruling.[322] On April 5, 2012, the United States Court of Appeals for the Second Circuit reinstated the case, allowing Viacom's lawsuit against Google to be heard in court again.[323] On March 18, 2014, the lawsuit was settled after seven years with an undisclosed agreement.[324]
Turkey blocked access between 2008 and 2010 after controversy over videos deemed insulting to Mustafa Kemal Atatürk.[406][407][408] In November 2010, a video of the Turkish politician Deniz Baykal caused the site to be blocked again briefly, and the site was threatened with a new shutdown if it did not remove the video.[409] During the two and a half-year block of YouTube, the video-sharing website remained the eighth-most-accessed site in Turkey.[410][411] In 2014, Turkey blocked the access for the second time, after "a high-level intelligence leak."[412][413][414]
Think of the crude, misogynistic and racially-charged mudslinging that has transpired over the last eight years on YouTube without any discernible moderation. Isn't any attempt to curb unidentified libelers worth a shot? The system is far from perfect, but Google should be lauded for trying to alleviate some of the damage caused by irate YouTubers hiding behind animosity and anonymity.
Frank Kameny, the last century’s greatest gay-rights activist, filed the first-ever Supreme Court petition challenging discrimination against homosexuals. He led some of the first gay-rights demonstrations. He was the first openly gay congressional candidate. He spearheaded the challenge to the psychiatric establishment’s categorization of homosexuality as a mental illness. He fought tirelessly against sodomy laws. He did a lot more than that. But there is one thing he never did—at least to my own recollection and that of associates of his whom I consulted. He did not use the term LGBTQ, or any of its variations.
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.
4. Use product placement and video sponsorship: Companies interested in your channel’s audience might sponsor your videos or offer you product placement deals in exchange for a shout out. You’ll likely receive payments on a per-sale basis or in commission tiers. Search on sites such as ShareASale, Clickbank and CJ Affiliate by Conversant for possible corporate partners — and be sure you’re willing to vouch for the company and products you’re selling before signing up.
Used by countless popular YouTubers, Patreon is a site that allows viewers to donate monthly to their favorite YouTubers, and in turn, allows the YouTuber to (if so desired) give rewards back to the viewers. And, despite the site taking about 10% of the donations for themselves, most YouTubers make more money through Patreon than their own channel, according to Bustle.
Regardless of the exact number, it's safe to assume that YouTube's ad sales are growing at a rapid clip. On its earnings calls, Google has signaled that outside of mobile search, YouTube has been the biggest driver behind its rapid ad sales growth. Last quarter, "paid clicks" on Google's own sites and apps rose 59% annually -- this figure covers not only actual ad clicks, but (among other things) the showing of YouTube video ads that were watched long enough for Google to get paid.

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.
Consider start-up costs. Your start-up costs largely depend on the type of content you're putting out. For "Pittsburgh Dad," the cost to launch the show was virtually nothing, Preksta says. The first episode required just three supplies: Preksta's iPhone, a polo shirt from Goodwill and a pair of glasses. The show hasn't required much of an investment in technology since, "At the end of the day, it's me, Curt and a couple of lights," Preksta says.
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."
We have strict rules on what's allowed, and a system that enables anyone who sees inappropriate content to report it to our 24/7 review team and have it dealt with promptly. We educate our community on the rules and include a direct link from every YouTube page to make this process as easy as possible for our users. Given the volume of content uploaded on our site, we think this is by far the most effective way to make sure that the tiny minority of videos that break the rules come down quickly.[347] (July 2008)
Chandar met me and led me into a massive conference room. In addition to being the CEO, he composes music for ChuChu. He’s the public face of the company and, at 39, a few years younger than the other four founders, who each hold an equal stake. He sent a young man to get me a coffee, and then we sat down together with his friend B. M. Krishnan, a former accountant and a ChuChu co-founder who is now the company’s chief creative officer.
The Pentagon’s admission, relayed to the Senate, came a week after The Atlantic revealed “errors in accounting” in how the U.S. had tracked and billed the Saudi-led coalition for refueling costs—a service that was among the most visible and controversial elements of support as civilian casualties grew. Washington’s support began in March 2015 under President Barack Obama, without explicit congressional authorization, and continued under the Trump administration, amid growing outrage in Congress over Saudi conduct. That changed last month when the Pentagon said it had ended aerial refueling at Riyadh’s request. The Pentagon’s acknowledgement puts a number to at least part of the expansive assistance that the U.S. provided to the Saudi-led coalition in Yemen over the last few years.
In February 2015, YouTube released a secondary mobile app known as YouTube Kids. The app is designed to provide an experience optimized for children. It features a simplified user interface, curated selections of channels featuring age-appropriate content, and parental control features.[60] Later on August 26, 2015, YouTube launched YouTube Gaming—a video gaming-oriented vertical and app for videos and live streaming, intended to compete with the Amazon.com-owned Twitch.[61]
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