Both In-Stream and Discovery are pay-per-view -- you pay YouTube a fixed rate for every view the ad receives -- and their return on investment (ROI) can be measured in Google AdWords. YouTube tallies one new "view" after 30 seconds of watching, or a click on the video as it's playing. If the video is less than 30 seconds, views are tallied from people who watch the entire ad.
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 April 2013, it was reported that Universal Music Group and YouTube have a contractual agreement that prevents content blocked on YouTube by a request from UMG from being restored, even if the uploader of the video files a DMCA counter-notice. When a dispute occurs, the uploader of the video has to contact UMG. YouTube's owner Google announced in November 2015 that they would help cover the legal cost in select cases where they believe fair use defenses apply.
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.
Some YouTube videos have themselves had a direct effect on world events, such as Innocence of Muslims (2012) which spurred protests and related anti-American violence internationally. TED curator Chris Anderson described a phenomenon by which geographically distributed individuals in a certain field share their independently developed skills in YouTube videos, thus challenging others to improve their own skills, and spurring invention and evolution in that field. Journalist Virginia Heffernan stated in The New York Times that such videos have "surprising implications" for the dissemination of culture and even the future of classical music.
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.
At the end of the day, though, there are a lot of variables that can affect just how much you can make on YouTube. Your audience has a lot to do with the type of ad that would work best. For example, if you are making short funny videos, it’s probably best to not include a 30-second ad at the beginning—a viewer might just skip right on by. Luckily, YouTube has an analytics page that you can use to see just about every measurable aspect of your video—from demographics to time of day watched and location.
The results reflect YouTube’s struggles to expand its core audience beyond teens and tweens. Many YouTube users treat the site as a video repository to be accessed from links or embedded video players posted elsewhere, rather than visiting YouTube.com daily. Google executives want them to turn on YouTube the way they turn on television, as a habit, where they can expect to find different “channels” of entertainment.
The choice of the name www.youtube.com led to problems for a similarly named website, www.utube.com. The site's owner, Universal Tube & Rollform Equipment, filed a lawsuit against YouTube in November 2006 after being regularly overloaded by people looking for YouTube. Universal Tube has since changed the name of its website to www.utubeonline.com. In October 2006, Google Inc. announced that it had acquired YouTube for $1.65 billion in Google stock, and the deal was finalized on November 13, 2006.