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.

YouTube Play Buttons, a part of the YouTube Creator Rewards, are a recognition by YouTube of its most popular channels.[304] The trophies made of nickel plated copper-nickel alloy, golden plated brass, silver plated metal and ruby are given to channels with at least one hundred thousand, a million, ten million and fifty million subscribers, respectively.[305][306]

Enabling monetization means that you agree you will only upload video content that you have the rights for and that you will play by the rules (such as not watching your own video over and over to boost ads). Google AdSense is the way you set up your payment information for when you actually start making money. I’ve posted links in the show notes of today’s episode so that you don’t have to hunt around for these links.
Of course, YouTube is funded by advertisers. So it makes sense to pay attention to their wants and desires. But under the current model, brands’ reactions are often a placeholder for third party regulation. And at the moment – as content creators are sketching the line for appropriate content – it is often advertisers who have the final say about acceptability.
YouTube originally offered videos at only one quality level, displayed at a resolution of 320×240 pixels using the Sorenson Spark codec (a variant of H.263),[86][87] with mono MP3 audio.[88] In June 2007, YouTube added an option to watch videos in 3GP format on mobile phones.[89] In March 2008, a high-quality mode was added, which increased the resolution to 480×360 pixels.[90] In November 2008, 720p HD support was added. At the time of the 720p launch, the YouTube player was changed from a 4:3 aspect ratio to a widescreen 16:9.[91] With this new feature, YouTube began a switchover to H.264/MPEG-4 AVC as its default video compression format. In November 2009, 1080p HD support was added. In July 2010, YouTube announced that it had launched a range of videos in 4K format, which allows a resolution of up to 4096×3072 pixels.[92][93] In June 2015, support for 8K resolution was added, with the videos playing at 7680×4320 pixels.[94] In November 2016, support for HDR video was added which can be encoded with Hybrid Log-Gamma (HLG) or Perceptual Quantizer (PQ).[95] HDR video can be encoded with the Rec. 2020 color space.[96]
As Grayson notes, PewDiePie’s endorsement of the E;R channel continues a long trend of the vlogger using his influence to normalize white supremacist alt-right rhetoric to an alarming — and, on YouTube, increasingly widespread — degree. In 2016 and 2017, PewDiePie faced intense backlash for multiple instances in which he promoted Nazi symbolism and anti-Semitism, including a video in which he threw a Nazi “heil” salute, and one in which he hired a pair of performers from a freelancer website to hold up a sign reading “Death to all Jews,” ostensibly as a satirical exercise. He followed that so-called stunt with a video where he used a racist slur during a gaming live stream.
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.
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.
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.
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.

Infrastructure costs -- The concept of free user services and scaling to eventually make them pay depends on the negligible price of adding additional consumers. But video is demanding of bandwidth and storage. Even if those are cheap in general, once you're handling as much material as the service does, it means big expenses for infrastructure. Although those costs won't scale linearly with the increased number of users, they do grow.
For example if your YouTube Channel happens to provide valuable video content for a very specific audience.  Say the channel teaches business owner how to organize their finances, track their expenses and save money on taxes.  Any company who is trying to reach business owners would love to place their ads on that channel because you would both share the same demographic.  The people who view that channel are their potential customers.
One reason is that it caters to a narrow audience of young viewers. Music videos are its most popular content. YouTube’s stars remain relatively unknown. Felix “PewDiePie” Kjellberg is the biggest star, with 35 million subscribers to his wacky videogame montages. Even Ms. Wojcicki hadn’t heard of him before joining YouTube, she told a conference last fall.
So, predictably, by the time it was 10 a.m., I had made and consumed two cups of coffee, taken out the trash, cleaned my room while taking a deliberately slow approach to folding my shirts, gone on a walk outside to clear my head, had a thing of yogurt and fruit to reward the physical exertion, sent an email to my aunt and sister, read about 100 Tweets (favorited three; written and deleted one), despaired at my lack of progress, comforted myself by eating a second breakfast, opened several tabs from ESPN.com on my browser ... and written absolutely nothing.

It's a little awkward, so we'll get straight to the point: This Sunday we humbly ask you to defend Wikipedia's independence. We depend on donations averaging about $16.36. But 98% of our readers in the U.S. are not responding to our messages, and time is running out to help in 2018. If everyone reading this gave $2.75, we could keep Wikipedia thriving for years to come. The price of your Sunday coffee is all we need. When we made Wikipedia a non-profit, people warned us we'd regret it. But if Wikipedia were commercial, it would be a great loss. Wikipedia unites all of us who love knowledge: contributors, readers and the donors who keep us thriving. The heart and soul of Wikipedia is a community of people working to bring you unlimited access to reliable information. Please take a minute to help us keep Wikipedia growing. Thank you.
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