Facebook (FB) , which trades for about nine times its 2018 revenue consensus, is still seeing 40%-plus revenue growth and has some big growth levers left to press, is arguably a better comp for YouTube, given its business model, network effect and market dominance. But Facebook is quite profitable -- in spite of heavy spending on data centers and content security, Facebook's 2018 net income consensus stands at $22.5 billion -- and based on comments made by YouTube CEO Susan Wojcicki and others -- YouTube's profits might still be minimal thanks to large data center and content investments.

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.


But whereas Disney has long mined cultures around the world for legends and myths—dropping them into consumerist, family-friendly American formats—ChuChu’s videos are a different kind of hybrid: The company ingests Anglo-American nursery rhymes and holidays, and produces new versions with subcontinental flair. The characters’ most prominent animal friend is a unicorn-elephant. Nursery rhymes become music videos, complete with Indian dances and iconography. Kids of all skin tones and hair types speak with an Indian accent.

Link economics -- For years, people in media and tech proclaimed the link economy. The idea was that you'd give away material, welcome people to link to it, and those links would bring new audiences that you could then turn into customers. But there is a basic problem, in that very few people actually click links that require them to go to other sites. As the Journal pointed out, many people simply watch a video hosted on YouTube and embedded elsewhere and don't actually visit Google's site, reducing the ability to display ads.
The online-video unit posted revenue of about $4 billion in 2014, up from $3 billion a year earlier, according to two people familiar with its financials, as advertiser-friendly moves enticed some big brands to spend more. But while YouTube accounted for about 6% of Google’s overall sales last year, it didn’t contribute to earnings. After paying for content, and the equipment to deliver speedy videos, YouTube’s bottom line is “roughly break-even,” according to a person with knowledge of the figure.
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.
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.
These two ends of a vast YouTube spectrum have clashed recently over two interesting and arguably related phenomena — both of which directly involve PewDiePie. The first is an ongoing battle that PewDiePie’s supporters have been waging in order to prevent his channel from being surpassed as the most popular one on YouTube. To keep this from happening, they’ve done everything from take out a Times Square billboard to reportedly hacking into 50,000 printers around the world in order to promote their “subscribe to PewDiePie” meme.

After all, relatability is a YouTuber’s greatest asset — along with a willingness to keep plugging away. “If you’re passionate about it, you really increase your chances of success,” says Asano. “It’s a lot of work. To produce just one video, you need camera equipment, a computer to edit it on, and time. And if you’re just starting out, you’re not going to get paid for a while because you need to build your subscribers. Don’t do it because you think you’re going to make an easy buck, because it’s not.”
Once you link your AdSense account to your YouTube account, you will receive credit for each video’s monthly revenue. Once you accumulate $100 in earnings, Google will issue a payment to your bank account. You can choose to be paid via direct deposit (not available in all countries) or check—direct deposit is the fastest method and has no fee. If you are located in the United States and earn more than $600 per year, Google will issue a 1099 form. Either way, you are required to pay income tax on your earnings.
These two ends of a vast YouTube spectrum have clashed recently over two interesting and arguably related phenomena — both of which directly involve PewDiePie. The first is an ongoing battle that PewDiePie’s supporters have been waging in order to prevent his channel from being surpassed as the most popular one on YouTube. To keep this from happening, they’ve done everything from take out a Times Square billboard to reportedly hacking into 50,000 printers around the world in order to promote their “subscribe to PewDiePie” meme.
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]
Estimates for YouTube's annual revenue, nearly all of which still comes from ads, vary a fair amount. But many of the estimates are now above $10 billion. At different points, Bank of America and Mizuho forecast that YouTube would post 2017 revenue of $13 billion and $12 billion, respectively. And in February, Baird's Colin Sebastian estimated YouTube is doing around $15 billion in annual sales.
YouTube Premium (formerly YouTube Red) is YouTube's premium subscription service. It offers advertising-free streaming, access to exclusive content, background and offline video playback on mobile devices, and access to the Google Play Music "All Access" service.[206] YouTube Premium was originally announced on November 12, 2014, as "Music Key", a subscription music streaming service, and was intended to integrate with and replace the existing Google Play Music "All Access" service.[207][208][209] On October 28, 2015, the service was relaunched as YouTube Red, offering ad-free streaming of all videos, as well as access to exclusive original content.[210][211][212] As of November 2016, the service has 1.5 million subscribers, with a further million on a free-trial basis.[213] As of June 2017, the first season of YouTube Red Originals had gotten 250 million views in total.[214]

The Hawaii native (real name Mark Fischbach) launched his YouTube channel in 2012 when he was a biomedical-engineering student at the University of Cincinnati. He was going through tough times: He’d broken up with his girlfriend, been laid off from his desk job and had an adrenal-gland tumor removed that surgeons found when they went to take out his appendix.   
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]
For people who dream of making money on YouTube, there are lots of online celebrities and channels to aspire to imitate. There's makeup superstar James Charles, who became the first male CoverGirl model. Liza Koshy's fame on Vine and then YouTube has led to traditional film and TV gigs, including a role in a Tyler Perry film. Even pop star Justin Bieber got his start on YouTube. According to YouTube, the number of channels that earned five figures or more grew by more than 50 percent from July 2017 to July 2018. Channels earning six figures per year increased by 40 percent.
In Libya and Egypt, the Innocence of Muslims trailer was blamed[by whom?] for violent protests in September 2012. YouTube stated that "This video—which is widely available on the Web—is clearly within our guidelines and so will stay on YouTube. However, given the very difficult situation in Libya and Egypt we have temporarily restricted access in both countries."[433][434]
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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.
YouTube's policies on "advertiser-friendly content" restrict what may be incorporated into videos being monetized; this includes strong violence, language, sexual content, and "controversial or sensitive subjects and events, including subjects related to war, political conflicts, natural disasters and tragedies, even if graphic imagery is not shown", unless the content is "usually newsworthy or comedic and the creator's intent is to inform or entertain".[352] In September 2016, after introducing an enhanced notification system to inform users of these violations, YouTube's policies were criticized by prominent users, including Phillip DeFranco and Vlogbrothers. DeFranco argued that not being able to earn advertising revenue on such videos was "censorship by a different name". A YouTube spokesperson stated that while the policy itself was not new, the service had "improved the notification and appeal process to ensure better communication to our creators".[353][354][355]
The great thing about sponsorships is that you don’t have to give YouTube a cut. Plus, you can negotiate whatever contracts you want based on impressions and the size of your audience. In most cases, the amount of revenue you generate from sponsorships is substantially more than YouTube ad revenue. (Meanwhile, you can still generate ad revenue. So it’s like having two sources of income from the same video.)

With 76 million subscribers, controversial gaming vlogger PewDiePie, a.k.a. Felix Kjellberg, is the most popular individual on YouTube. In a since-edited video posted on December 9, he recommended a litany of YouTube channels he said he’d been enjoying recently, briefly mentioning a YouTube channel called “E;R,” noting that it produces “great video essays,” including “one on [the Netflix movie] Death Note which I really enjoyed.” He also linked to the channel in his video description. (The recommendation has since been edited out of the video.)
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.
Until last month, pretty much any random person could enable the “monetization” setting on their YouTube account and get ads on their videos, allowing them to earn a fraction of a cent for every time a person viewed or clicked on their content. That all changed in January, however, when Google (YouTube’s owner) announced new standards to merit those ads. Now, to be accepted into the “YouTube Partner Program” and monetize your channel, you need a minimum of 1,000 subscribers and 4,000 hours of watch-time over the past 12 months; your videos will also be more closely monitored for inappropriate content. Meanwhile, YouTube also promised that members of “Google Preferred” — a vaunted group of popular channels that make up YouTube’s top 5 percent, and command higher ad dollars because of it — will be more carefully vetted. (These shifts followed the Logan Paul controversy, as well as a brouhaha about ads running on unsavory content, such as sexually explicit or extremist videos.)
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.

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?”

Previously, viewing YouTube videos on a personal computer required the Adobe Flash Player plug-in to be installed in the browser.[70] In January 2010, YouTube launched an experimental version of the site that used the built-in multimedia capabilities of web browsers supporting the HTML5 standard.[71] This allowed videos to be viewed without requiring Adobe Flash Player or any other plug-in to be installed.[72][73] The YouTube site had a page that allowed supported browsers to opt into the HTML5 trial. Only browsers that supported HTML5 Video using the MP4 (with H.264 video) or WebM (with VP8 video) formats could play the videos, and not all videos on the site were available.[74][75]
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