“The way YouTube is distributed is not always conducive to ad revenue,” said Tim Bajarin, principal analyst with Campbell-based Creative Strategies, which tracks the the technology sector. “The YouTube ads are on the side, but they are not embedded in the programming, like you see in television.” The current YouTube format might be good for consumers, but that doesn’t mean it’s all that great for the bottom line, Bajarin said. “They are going to have to change things up,” Bajarin said.
This goes against what has drawn many audiences to the platform in the first place. YouTube has a history of LGBT acceptance – being the home of the “it gets better” videos, in which celebrities and public figures tell their coming out stories. Many people have also spoken about how YouTube’s videos on transitioning or mental health helped them greatly. So given this, it is hoped that going forward, YouTube also remembers to pay attention to their communities and audiences as well as the big brands and content creators.
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.
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.
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.
“The largest fucking YouTuber on the planet made a video that got 7 million views in 7 hours,” Hasan Piker, a commentator for the left-wing web series The Young Turks, said on his own YouTube channel. “That seems like a fucking big problem, especially if the majority of his viewers are 14-year-old kids who are going to go over to this fucking channel and start watching this guy’s cartoon videos. ... [E;R] has an interest in red-pilling people and turning them over to Naziism or to Fascist ideology. How do you think this will play out when PewDiePie hypes this guy’s fucking channel?”
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.
YouTube already offers advertisers the opportunity to withdraw from advertising on some videos – such as LGBTQ content or discussions of mental health – if it doesn’t sit well alongside a brand’s message. It was revealed last year that this can sometimes then lead to content being demonetised. In other words, the creator does not receive a share of ad revenue for that video.
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.
The ChuChu guys didn’t set out to make educational programming. They were just making videos for fun. How were they to know they’d become a global force in children’s entertainment? As time went on and the staff expanded, the company created a teaching series, called Learning English Is Fun, and worked with a preschool company to develop an app, ChuChu School, that has an explicitly didactic purpose. But generally speaking, Chandar and Krishnan just wanted their videos to be wholesome—to deliver entertainment that perhaps provided kids with a dose of moral instruction.
Much of YouTube's revenue goes to the copyright holders of the videos. In 2010, it was reported that nearly a third of the videos with advertisements were uploaded without permission of the copyright holders. YouTube gives an option for copyright holders to locate and remove their videos or to have them continue running for revenue. In May 2013, Nintendo began enforcing its copyright ownership and claiming the advertising revenue from video creators who posted screenshots of its games. In February 2015, Nintendo agreed to share the revenue with the video creators.
Five years on, ChuChu TV is a fast-growing threat to traditional competitors, from Sesame Street to Disney to Nickelodeon. With all its decades of episodes, well-known characters, and worldwide brand recognition, Sesame Street has more than 5 billion views on YouTube. That’s impressive, but ChuChu has more than 19 billion. Sesame Street’s main feed has 4 million subscribers; the original ChuChu TV channel has 19 million—placing it among the top 25 most watched YouTube channels in the world, according to the social-media-tracking site Social Blade—and its subsidiary channels (primarily ChuChu TV Surprise Eggs Toys and ChuChu TV Español) have another 10 million.
In May 2014, before Music Key service was launched, the independent music trade organization Worldwide Independent Network alleged that YouTube was using non-negotiable contracts with independent labels that were "undervalued" in comparison to other streaming services, and that YouTube would block all music content from labels who do not reach a deal to be included on the paid service. In a statement to the Financial Times in June 2014, Robert Kyncl confirmed that YouTube would block the content of labels who do not negotiate deals to be included in the paid service "to ensure that all content on the platform is governed by its new contractual terms." Stating that 90% of labels had reached deals, he went on to say that "while we wish that we had [a] 100% success rate, we understand that is not likely an achievable goal and therefore it is our responsibility to our users and the industry to launch the enhanced music experience." The Financial Times later reported that YouTube had reached an aggregate deal with Merlin Network—a trade group representing over 20,000 independent labels, for their inclusion in the service. However, YouTube itself has not confirmed the deal.
Watching my daughter play with my phone is a horrifying experience, precisely because her mimicry of adult behaviors is already so accurate. Her tiny fingers poke at buttons, pinch to zoom, endlessly scroll. It’s as though she’s grown a new brain from her fingertips. Most parents feel some version of this horror. Watching them poke and pinch at our devices, we realize that these rectangles of light and compulsion are not going away, and we are all dosing ourselves with their pleasures and conveniences without knowing the consequences.
With two small kids in my own house, I haven’t been navigating this new world as a theoretical challenge. My youngest, who is 2, can rarely sustain her attention to watch the Netflix shows we put on for my 5-year-old son. But when I showed her a ChuChu video, just to see how she’d react, I practically had to wrestle my phone away from her. What was this stuff? Why did it have the effect it did?
Before you can start getting paid, you'll need to reach the payment threshold. This varies depending on your currency. In the US, the payment threshold is $100. This means you'll need to earn $100 before you can start collecting any money. If you've hit your payment threshold, you'll be paid around the 21st of every month. If you didn't meet the threshold, that money will be rolled over into next month's amount.
An independent test in 2009 uploaded multiple versions of the same song to YouTube, and concluded that while the system was "surprisingly resilient" in finding copyright violations in the audio tracks of videos, it was not infallible. The use of Content ID to remove material automatically has led to controversy in some cases, as the videos have not been checked by a human for fair use. If a YouTube user disagrees with a decision by Content ID, it is possible to fill in a form disputing the decision. Prior to 2016, videos weren't monetized until the dispute was resolved. Since April 2016, videos continue to be monetized while the dispute is in progress, and the money goes to whoever won the dispute. Should the uploader want to monetize the video again, they may remove the disputed audio in the "Video Manager". YouTube has cited the effectiveness of Content ID as one of the reasons why the site's rules were modified in December 2010 to allow some users to upload videos of unlimited length.
For kids to have the best chance of learning from a video, Johnson told me, it must unfold slowly, the way a book does when it is read to a child. “Calmer, slower-paced videos with less distracting features are more effective for younger children,” she said. “This also allows the video to focus attention on the relevant visuals for the song, thus aiding in comprehension.”
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.
At the time of uploading a video, YouTube users are shown a message asking them not to violate copyright laws. 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. 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. 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".
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.
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.
Also in November 2017, it was revealed in the media that many videos featuring children – often uploaded by the minors themselves, and showing innocent content – were attracting comments from pedophiles and circulating on the dark web, with predators finding the videos by typing in certain keywords in Russian. As a result of the controversy, which added to the concern about "Elsagate", several major advertisers whose ads had been running against such videos froze spending on YouTube.
Alternatively, you can also become an affiliate for brands and make residual passive income through commissions from every sale you generate through your channel. This works especially well if you review products as part of your YouTube channel. Since there's no risk involved on the brand's end (they only pay when they make sales), there's usually a low bar to getting started.
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?”
Typically only offered to large YouTube channels with a wide audience (although not exclusively), another big way to earn cash through YouTube is to get sponsored deals with companies that will pay you to promote or mention their products in your videos. You can earn money this way either as a lump sum of cash the company will pay you for the deal, clicks on the company's link, or on a per-view basis.
Make your videos with a specific type of person in mind. This is basic advertising 101; identifying your target demographic. Don’t tell me that your demographics are 21 – 55 year old women. This is the shotgun approach that’s too general and vague. Do you talk to a 21 year old girl the same way you’d talk to a 55 year old lady? Of course not. Define your audience and create videos that’s catered to them.
Wait for approval. If you are rejected from the program, you must wait two months before applying again. If approved, you'll be allowed to choose the type of ads you want run on your videos. As of 2011, YouTube partners receive 68 percent of the profit their videos generate through advertising, so advertising your videos and nurturing your followers helps you turn a profit even faster.
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.
On the other side lie many, many YouTube users who visit the site for other reasons and other forms of entertainment, and who arguably aren’t interested in supporting the cult of personalities that might be said to represent “old-school” YouTube. Instead, they come to the site for music, memes, narrative media, instructional videos, and more general forms of content consumption and entertainment.
And while PewDiePie only follows a few hundred people on Twitter, many of them are alt-right-identified figures — including Peterson, the prominent Gamergate writer Ian Miles Cheong, Infowars editor Paul Joseph Watson, the alt-right YouTube philosopher Stefan Molyneux, the alt-right Canadian blogger Lauren Southern, the recently “redpilled” YouTube personality Laci Green, and leading figures of YouTube’s reactionary right-wing community, like Dave Rubin and Ben Shapiro. PewDiePie also followed notorious alt-right YouTuber Sargon of Akkad until the latter’s suspension from Twitter last year. (Kjellberg has not responded to a request from Vox for comment.)
YouTube carried out early experiments with live streaming, including a concert by U2 in 2009, and a question-and-answer session with US President Barack Obama in February 2010. These tests had relied on technology from 3rd-party partners, but in September 2010, YouTube began testing its own live streaming infrastructure. In April 2011, YouTube announced the rollout of YouTube Live, with a portal page at the URL "www.youtube.com/live". The creation of live streams was initially limited to select partners. It was used for real-time broadcasting of events such as the 2012 Olympics in London. In October 2012, more than 8 million people watched Felix Baumgartner's jump from the edge of space as a live stream on YouTube.