And though they don't appear to be huge revenue contributors at this point, the YouTube Red and YouTube TV subscription services can't be overlooked when trying to value the company. Particularly YouTube Red, which provides ad-free YouTube, some original shows and access to the Google Play Music service for $10 per month, and which led YouTube to become the top-grossing U.S. iPhone app in March. Later this year, Google plans to replace Google Play Music -- in many ways Red's weak link -- with YouTube Remix, a music service that's fully integrated with YouTube.
In a widely circulated essay last year, the artist James Bridle highlighted the many violent, odd, and nearly robotic children’s videos sitting in the vaults of YouTube. They didn’t seem made by human hands, he wrote, or at least not completely. Some were sadistic or sick. (After Bridle’s essay was published, YouTube undertook an effort to purge the site of “content that attempts to pass as family-friendly, but clearly is not,” and ultimately removed some of the disturbing videos the essay cited.) Others seemed like grab bags of keywords that had been successful for more professional operations: nursery rhymes, surprise eggs, finger family, learning colors. These were videos reverse engineered from whatever someone might enter into the YouTube search box. And though none of these videos has achieved the scale of ChuChu’s work, they definitely get seen, and are occasionally recommended to a child who has been happily watching something more virtuous.
Finally, leverage your YouTube reputation and attract live speaking engagements. If the YouTube channel you produce is focused on a specific niche or audience, do some research about annual conferences or other industry events that have keynote speakers. Then, utilize your YouTube statistics and some of your best clips, to put together a package and pitch to the directors of these events.

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?”)
The survey was interested in the particulars of respondents’ anger. In its 14 pages, it sought an almost voyeuristic level of detail. It asked the woman to describe the stages of her fury, which words she had shouted, whether punches had been thrown. “In becoming angry, did you wish to get back at, or gain revenge?” the survey inquired. Afterward, did you feel “triumphant, confident and dominant” or “ashamed, embarrassed and guilty”? There were also questions for people like her husband, who had been on the receiving end: “Did the other person’s anger come as a surprise to you, or did you expect that it would occur?”
When a video goes viral, YouTube is typically the driving force. As of 2011, YouTube is the third-ranked website globally, with hundreds of millions of users. While you might be using YouTube only to look up video of cute cats and funny pranks, other users actually generate a profit stream ranging from pocket money to money in the bank using their personal YouTube channels and the videos they create. If you want in on the YouTube gravy train, the first thing you should know is that it's not as easy as it may look.
YouTube entered into a marketing and advertising partnership with NBC in June 2006.[286] In March 2007, it struck a deal with BBC for three channels with BBC content, one for news and two for entertainment.[287] 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.[288][289] 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.[290] In January 2010, YouTube introduced an online film rentals service,[291] which is only available to users in the United States, Canada, and the UK as of 2010.[292][293] The service offers over 6,000 films.[294]
Among the specific findings, researchers demonstrated that Sesame Street improved children’s vocabulary, regardless of their parents’ education or attitudes. Another study found that regular adult TV stunted vocabulary development, while high-quality educational programs accelerated language acquisition. The most fascinating study began in the 1980s, when a University of Massachusetts at Amherst team installed video cameras in more than 100 homes, and had those families and hundreds of others keep a written log of their media diet. Following up more than a decade later, researchers found that “viewing educational programs as preschoolers was associated with higher grades, reading more books, placing more value on achievement, greater creativity, and less aggression.” On the flip side, violent programming led to lower grades among girls, in particular. The team was unequivocal about the meaning of these results: What kids watched was much more important than how much of it they watched. Or, as the researchers’ refutation of Marshall McLuhan’s famous aphorism went, “The medium is not the message: The message is.”
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.
But sponsorships are where the big bucks are made, and where intermediaries like MediaKix and other agencies come in. This is the major leagues: Most brands aren’t interested in YouTube channels with fewer than 200,000 to 300,000 subscribers or average views of less than 10,000 to 20,000 per video, says Asano. The bar is also high because videos cost more to make, and require tricky negotiations —the sponsor will want to know where their product will be featured, for how long, and so forth. “When we’re connecting top brands with top influencers on YouTube, you’re talking a minimum budget of $50,000 to $100,000, and it just goes up from there,” Asano explains. “Some of the biggest YouTube influencers get paid $100,000 to 200,000 for a single video. And then those videos get millions of views. That’s why there’s a lot of money in the space.”

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.
YouTube earns advertising revenue from Google AdSense, a program which targets ads according to site content and audience. The vast majority of its videos are free to view, but there are exceptions, including subscription-based premium channels, film rentals, as well as YouTube Premium, a subscription service offering ad-free access to the website and access to exclusive content made in partnership with existing users.
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