YouTube's still-rapid viewing growth -- driven by smartphones and to an extent connected TVs -- has a lot to do with its revenue momentum. At last week's NewFronts online video ad event, YouTube disclosed it now had over 1.8 billion monthly logged-in viewers, up from 1.5 billion as of last June. And back in February 2017, YouTube said it was seeing over a billion hours per day of viewing -- that's about three times what Netflix (NFLX) witnessed on a record-breaking day in January, and 10 times what YouTube saw back in 2012.

If you think that’s alarming, especially given the many teens and preteens who watch and are influenced by PewDiePie, you’re not alone. In many ways, PewDiePie’s trollish irreverence and offense-proof shock humor embodies a more pervasive overlap between YouTube’s gaming culture and its alt-right culture. And the criticisms leveled at him in his role as YouTube’s most popular creator represent what seems to have become a larger battle to reclaim YouTube culture— a battle that in recent months has come to a head around PewDiePie himself.
Though the furor around PewDiePie’s repeated antics has subsided after each of these incidents, his courting of alt-right ideas has not. Though he has never openly identified himself as a member or supporter of the alt-right, he has continued to like and promote channels run by alt-right-affiliated users, and earlier this year, he made a video in which he reviewed the right-wing personality and alt-right hero Jordan Peterson’s controversial self-help book. In the review, PewDiePie endorsed the book, called it a “fun” read, and said he would take some of its advice.
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.
In March 2010, YouTube began free streaming of certain content, including 60 cricket matches of the Indian Premier League. According to YouTube, this was the first worldwide free online broadcast of a major sporting event.[39] On March 31, 2010, the YouTube website launched a new design, with the aim of simplifying the interface and increasing the time users spend on the site. Google product manager Shiva Rajaraman commented: "We really felt like we needed to step back and remove the clutter."[40] In May 2010, YouTube videos were watched more than two billion times per day.[41][42][43] This increased to three billion in May 2011,[44][45][46] and four billion in January 2012.[23][47] In February 2017, one billion hours of YouTube was watched every day.[48][49][50]
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?”)
Observing that face-to-face communication of the type that online videos convey has been "fine-tuned by millions of years of evolution", TED curator Chris Anderson referred to several YouTube contributors and asserted that "what Gutenberg did for writing, online video can now do for face-to-face communication".[254] Anderson asserted that it's not far-fetched to say that online video will dramatically accelerate scientific advance, and that video contributors may be about to launch "the biggest learning cycle in human history."[254] In education, for example, the Khan Academy grew from YouTube video tutoring sessions for founder Salman Khan's cousin into what Forbes'  Michael Noer called "the largest school in the world", with technology poised to disrupt how people learn.[255] YouTube was awarded a 2008 George Foster Peabody Award,[256] the website being described as a Speakers' Corner that "both embodies and promotes democracy."[257] The Washington Post reported that a disproportionate share of YouTube's most subscribed channels feature minorities, contrasting with mainstream television in which the stars are largely white.[258] A Pew Research Center study reported the development of "visual journalism", in which citizen eyewitnesses and established news organizations share in content creation.[259] The study also concluded that YouTube was becoming an important platform by which people acquire news.[260]
This might not exactly seem like a tragedy. After all, Americans watch a lot of TV. By the time Nielsen began recording how much time Americans spent in front of TV screens in 1949–50, each household was already averaging four hours and 35 minutes a day. That number kept going up, passing six hours in 1970–71, seven hours in 1983–84, all the way up to eight hours in 2003–04. Viewing finally peaked at eight hours and 55 minutes in 2009–10. Since then, the numbers have been gliding downward, with the most recent data showing Americans’ viewing habits edging under eight hours a day for the first time since George W. Bush’s presidency.
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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.
3. Check out YouTube Red: AdSense isn’t the only way partners can make money on YouTube. You can also make videos available on YouTube Red, which is the site’s ad-free subscription service. And if you have more than 1,000 active subscribers, you can put videos behind a paywall and enable Super Chat, which lets viewers pay to have their messages highlighted during a live stream. To use that feature, partners have to be older than 18.

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]


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.[330][331] 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.[332]
In order for a YouTuber to get paid for an ad, the viewer of their video must have Ad-Block turned off (meaning they will see all the ads on videos) and must watch at least 30 seconds of videos they could otherwise skip. Or, this will work if the viewer sees smaller ads like banner ads, according to YouTuber Mah-Dry-Bread. The money generated from the viewer watching these ads is split between YouTube and your channel.
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.
In March 2017, the government of the United Kingdom pulled its advertising campaigns from YouTube, after reports that its ads had appeared on videos containing extremism content. The government demanded assurances that its advertising would "be delivered in a safe and appropriate way". The Guardian newspaper, as well as other major British and U.S. brands, similarly suspended their advertising on YouTube in response to their advertising appearing near offensive content. Google stated that it had "begun an extensive review of our advertising policies and have made a public commitment to put in place changes that give brands more control over where their ads appear".[356][357] In early April 2017, the YouTube channel h3h3Productions presented evidence claiming that a Wall Street Journal article had fabricated screenshots showing major brand advertising on an offensive video containing Johnny Rebel music overlaid on a Chief Keef music video, citing that the video itself had not earned any ad revenue for the uploader. The video was retracted after it was found that the ads had actually been triggered by the use of copyrighted content in the video.[358][359]
In May 2013, creation of live streams was opened to verified users with at least 1,000 subscribers; in August of that year the number was reduced to 100 subscribers,[106] and in December the limit was removed.[107] In February 2017, live streaming was introduced to the official YouTube mobile app. Live streaming via mobile was initially restricted to users with at least 10,000 subscribers,[108] but as of mid-2017 it has been reduced to 100 subscribers.[109] Live streams can be up to 4K resolution at 60 fps, and also support 360° video.[110] In February 2017, a live streaming feature called Super Chat was introduced, which allows viewers to donate between $1 and $500 to have their comment highlighted.[111]

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.
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.”

ChuChu does not employ the weird keyword-stuffed titles used by lower-rent YouTube channels. The company’s titles are simple, sunny, consistent. Its theory of media is that good stuff wins, which is why its videos have won. “We know what our subscribers want, and we give it to them,” Chandar says. ChuChu says it adds roughly 40,000 subscribers a day.
At first, pretty much everybody agrees, television for kids was bad—dumb cartoons, cowboy shows, locally produced slop. There also wasn’t much of it, so kids often watched whatever adult programming was on TV. In the early 1950s, one teacher enumerated the changes she’d seen in her pupils since they had “got television”: “They have no sense of values, no feeling of wonder, no sustained interest. Their shallowness of thought and feeling is markedly apparent, and they display a lack of cooperation and inability to finish a task.” There were calls for action.
Still, one of the main ways (or easiest) to earn money on YouTube is through YouTube running ads on your videos. Once you get a certain amount of views, you can connect your account to a Google AdSense account, which will allow you to start earning money on your videos, according to USA Today. In order to qualify, you reportedly now need (as of January 2018) 4,000 watch hours in the past 12 months, plus 1,000 subscribers to join the YouTube Partner Program (which will get you ads and therefore cash from your channel). 
The money you earn on YouTube is entirely dependant upon how many views your videos receive. If you have a large number of subscribers and all of your videos receive thousands of views, the ad revenue will be high. If your videos have a low number of views, those videos will not generate much in terms of revenue. “Gangnam Style,” for example, was a viral hit that received over two billion views and generated as much as $5.9 million in revenue. However, even popular users generally see views in the thousands rather than the billions, so earnings are considerably lower on average. As of 2013, it is estimated that one video with a million views can earn the creator between $800 and $8,000.
ChuChu learns many lessons from parents, who provide the company with constant feedback. It heard from parents who questioned the diversity of its characters, who were all light-skinned; it now has two light-skinned and two dark-skinned main characters. It heard from parents who wondered about the toy guns in one video; it removed them. It heard from parents about an earlier version of the “Johny Johny” video, in which the little boy sleeps in a communal bed with his family, as is common in India; in a new version, he has his own room.
In September 2008, The Daily Telegraph commented that YouTube was "notorious" for "some of the most confrontational and ill-formed comment exchanges on the internet", and reported on YouTube Comment Snob, "a new piece of software that blocks rude and illiterate posts".[381] The Huffington Post noted in April 2012 that finding comments on YouTube that appear "offensive, stupid and crass" to the "vast majority" of the people is hardly difficult.[382]
But each of the three videos PewDiePie featured in his since-removed shoutout of the E;R channel featured fairly obvious examples of the channel’s offensive content — in fact, not only did part one of the Death Note review that Kjellberg said he liked directly invoke a racial slur in its video description (the description has since been edited), but the first 15 seconds of part two contain a blatant reference to a 2017 incident in which Kjellberg himself dropped a racial slur, strategically edited but unmissable if you’re familiar with the clip in question — which most of Kjellberg’s followers would reasonably be.
Since PewDiePie’s December 9 video drew greater attention to the E;R channel, YouTube has reportedly suspended one of the creator’s videos and issued a strike against the account for violating the site’s community guidelines. The suspended video, which according to E;R had 2 million views at the time of its removal from YouTube, was ostensibly about Steven Universe — but it also contained four minutes of unedited footage of Hitler delivering a speech. YouTube has not yet responded to Vox’s request for comment.
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]
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.
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.
Fifty years ago, the most influential children’s-television studio of the 20th century, Children’s Television Workshop, came into being, thanks to funding from the Ford Foundation, the Carnegie Corporation of New York, and the United States government. It created an unprecedented thing—Sesame Street—with help from a bevy of education experts and Jim Henson, the creator of the Muppets. The cast was integrated. The setting was urban. The show was ultimately broadcast on public television across America, defining a multicultural ideal at a time of racial strife. It was the preschool-media embodiment of the War on Poverty, a national government solution to the problems of America’s cities.
At first, pretty much everybody agrees, television for kids was bad—dumb cartoons, cowboy shows, locally produced slop. There also wasn’t much of it, so kids often watched whatever adult programming was on TV. In the early 1950s, one teacher enumerated the changes she’d seen in her pupils since they had “got television”: “They have no sense of values, no feeling of wonder, no sustained interest. Their shallowness of thought and feeling is markedly apparent, and they display a lack of cooperation and inability to finish a task.” There were calls for action.

The driver dropped me off just south of the center of the city, in an area of new high-rises that overlook Srinivasapuram, a fishing village on the Bay of Bengal. The village hangs on to the edge of the city, which has been modernizing fast; the government has been trying to relocate the village for years. From my hotel, I watched tiny figures wander over to the Adyar River estuary and squat, staring up at the opulence of the new Chennai.
Instead, YouTube success takes time and dedication. Kelli Segars, the co-counder of Fitness Blender, a YouTube channel with over 5 million subscribers, spent two years posting new workout videos every week before she and her husband could quit their day jobs in 2010 to focus on the brand full time. Still, without YouTube, Fitness Blender probably wouldn’t exist. “When we first set out to create free online workout videos, we found that most streaming platforms charged so much to host content that we were never going to be able to break into the industry at all, let alone offer free content to our (then nonexistent) audience,” says Segars.
In March 2017, the government of the United Kingdom pulled its advertising campaigns from YouTube, after reports that its ads had appeared on videos containing extremism content. The government demanded assurances that its advertising would "be delivered in a safe and appropriate way". The Guardian newspaper, as well as other major British and U.S. brands, similarly suspended their advertising on YouTube in response to their advertising appearing near offensive content. Google stated that it had "begun an extensive review of our advertising policies and have made a public commitment to put in place changes that give brands more control over where their ads appear".[356][357] In early April 2017, the YouTube channel h3h3Productions presented evidence claiming that a Wall Street Journal article had fabricated screenshots showing major brand advertising on an offensive video containing Johnny Rebel music overlaid on a Chief Keef music video, citing that the video itself had not earned any ad revenue for the uploader. The video was retracted after it was found that the ads had actually been triggered by the use of copyrighted content in the video.[358][359]
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.[330][331] 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.[332]

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.


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.[339] 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.[340] If a YouTube user disagrees with a decision by Content ID, it is possible to fill in a form disputing the decision.[341] 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.[342] Should the uploader want to monetize the video again, they may remove the disputed audio in the "Video Manager".[343] 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.[344]
Its a place where billions of people gather to listen to the voice of another, its not just a business anymore, its a massive public forum and its speakers deserve the protection of free speech laws, youtube needs to ditch the algorythm, tell advertisers to suck it up, tell copyright trolls that content will no longer be removed and usher in some new laws to stop copyright trolls from making youtube accountable for content and any complaints about a video should be raised to law enforcement of the region the video originated from, where the video can be reviewed by a person, and have a fixed fine for the origin of the complaint if the video was not considered a crime.
5. Sell products or services to viewers: If you have merchandise or offer a service that’s relevant to your audience, let them know about it and provide links in your videos. For example, comedian Jenna Mourey, more commonly known by her YouTube name Jenna Marbles, sells T-shirts and posters featuring one of her dogs. Selling a physical product might require you to buy materials or find a manufacturer, but you can also sell downloadables such as e-books or art prints. Have a secure payment system in place before you advertise your goods.
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.
It's worth noting here that even Twitter (TWTR) , which is seeing minuscule monthly user and ad revenue growth, is valued at more than seven times its 2018 revenue consensus. And Snap (SNAP) , which (though seeing strong revenue growth) is contending with slowing user growth and faces big questions about its long-term profitability, is worth over 11 times its 2018 revenue consensus.

“Even if advertisers are paying a decent amount to promote their products through video ads, only a portion of their expenditures ever make it into content creators’ pockets,” says entrepreneur Michael Johnston. “For example, if advertisers are paying an average of $20 per 1,000 ad impressions, the videos where those ads are being shown may only generate $2 or $3 per 1,000 views.”
Soon after the snows of 1977 began to thaw, the residents of Greenfield, Massachusetts, received a strange questionnaire in the mail. “Try to recall the number of times you became annoyed and/or angry during the past week,” the survey instructed. “Describe the most angry of these experiences.” One woman knew her answer: Recently, her husband had bought a new car. Then he had driven it to his mistress’s house so she could admire the purchase. When the wife found out, she was livid. Furious. Her rage felt like an eruption she couldn’t control.
In 2013, the average cost per thousand (CPM) for YouTube was $7.60. CPM (cost per thousand) is an industry term that represents revenue per thousand views. In 2013, the average income for each YouTube content creator was $7.60 per every thousand views. A video with 500 views would have earned roughly $3.80. A video like Gangnam Style with a billion views would earn $7.8 million. Some videos earn a higher or lower than average rate depending on the video content. Videos containing copyrighted music do not earn revenue for the video creator, and some topics may not attract advertisers. Others have a strong draw from advertisers and drive up the CPM.
Most modern smartphones are capable of accessing YouTube videos, either within an application or through an optimized website. YouTube Mobile was launched in June 2007, using RTSP streaming for the video.[133] Not all of YouTube's videos are available on the mobile version of the site.[134] Since June 2007, YouTube's videos have been available for viewing on a range of Apple products. This required YouTube's content to be transcoded into Apple's preferred video standard, H.264, a process that took several months. YouTube videos can be viewed on devices including Apple TV, iPod Touch and the iPhone.[135] In July 2010, the mobile version of the site was relaunched based on HTML5, avoiding the need to use Adobe Flash Player and optimized for use with touch screen controls.[136] The mobile version is also available as an app for the Android platform.[137][138] In September 2012, YouTube launched its first app for the iPhone, following the decision to drop YouTube as one of the preloaded apps in the iPhone 5 and iOS 6 operating system.[139] According to GlobalWebIndex, YouTube was used by 35% of smartphone users between April and June 2013, making it the third-most used app.[140]
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