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.”
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.

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.
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?”)

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.


Where eyeballs go, money follows. “People giving up TV and getting video content through mobile devices is a huge trend, and brands are spending huge amounts to reach those audiences,” says Evan Asano, the CEO of MediaKix, an influencer marketing agency. “It’s a similar, if not bigger market for influencers than Instagram.” Another reason brands love YouTube is that its numbers are harder to fake. “You can buy views on YouTube, but it’s much more expensive than buying followers and likes on Instagram,” Asano says. “It’s pretty cost-prohibitive to drastically inflate a channel’s views on a consistent basis.”
That kind of growth suggests that something unpredictable and wild is happening: America’s grip on children’s entertainment is coming to an end. ChuChu is but the largest of a new constellation of children’s-media brands on YouTube that is spread out across the world: Little Baby Bum in London, Animaccord Studios in Moscow, Videogyan in Bangalore, Billion Surprise Toys in Dubai, TuTiTu TV in Tel Aviv, and LooLoo Kids in Iași, a Romanian town near the country’s border with Moldova. The new children’s media look nothing like what we adults would have expected. They are exuberant, cheap, weird, and multicultural. YouTube’s content for young kids—what I think of as Toddler YouTube—is a mishmash, a bricolage, a trash fire, an explosion of creativity. It’s a largely unregulated, data-driven grab for toddlers’ attention, and, as we’ve seen with the rest of social media, its ramifications may be deeper and wider than you’d initially think.
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.
If hookups are your thing, Grindr and Tinder offer the prospect of casual sex within the hour. The phrase If something exists, there is porn of it used to be a clever internet meme; now it’s a truism. BDSM plays at the local multiplex—but why bother going? Sex is portrayed, often graphically and sometimes gorgeously, on prime-time cable. Sexting is, statistically speaking, normal.
How does a video streaming service with one billion active users per month and $4 billion in revenue not turn a profit? Ask YouTube, which couldn't break free from breaking even in 2014, according to a new report. Sources tell the Wall Street Journal that Google's video unit posted $4 billion in revenue last year, up from $3 billion in 2013, and that while the service accounted for 6 percent of Google's overall sales, it contributed nothing to earnings.
That kind of growth suggests that something unpredictable and wild is happening: America’s grip on children’s entertainment is coming to an end. ChuChu is but the largest of a new constellation of children’s-media brands on YouTube that is spread out across the world: Little Baby Bum in London, Animaccord Studios in Moscow, Videogyan in Bangalore, Billion Surprise Toys in Dubai, TuTiTu TV in Tel Aviv, and LooLoo Kids in Iași, a Romanian town near the country’s border with Moldova. The new children’s media look nothing like what we adults would have expected. They are exuberant, cheap, weird, and multicultural. YouTube’s content for young kids—what I think of as Toddler YouTube—is a mishmash, a bricolage, a trash fire, an explosion of creativity. It’s a largely unregulated, data-driven grab for toddlers’ attention, and, as we’ve seen with the rest of social media, its ramifications may be deeper and wider than you’d initially think.
On September 13, 2016, YouTube launched a public beta of Community, a social media-based feature that allows users to post text, images (including GIFs), live videos and others in a separate "Community" tab on their channel.[121] Prior to the release, several creators had been consulted to suggest tools Community could incorporate that they would find useful; these YouTubers included Vlogbrothers, AsapScience, Lilly Singh, The Game Theorists, Karmin, The Key of Awesome, The Kloons, Peter Hollens, Rosianna Halse Rojas, Sam Tsui, Threadbanger and Vsauce3.[122]

YouTube does not usually offer a download link for its videos, and intends for them to be viewed through its website interface.[126] A small number of videos, can be downloaded as MP4 files.[127] Numerous third-party web sites, applications and browser plug-ins allow users to download YouTube videos.[128] In February 2009, YouTube announced a test service, allowing some partners to offer video downloads for free or for a fee paid through Google Checkout.[129] In June 2012, Google sent cease and desist letters threatening legal action against several websites offering online download and conversion of YouTube videos.[130] In response, Zamzar removed the ability to download YouTube videos from its site.[131]
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]

The men know this with quantitative precision. YouTube analytics show exactly when a video’s audience falls off. ChuChu and other companies like it—whatever their larger philosophy—can see exactly what holds a toddler’s attention, moment by moment, and what causes it to drift. If a video achieves a 60 percent average completion rate, ChuChu knows it has a hit. Using these data doesn’t let it “crack the algorithm”; everyone has access to a version of these numbers. Instead, Chandar uses the analytics to tune his and other creators’ intuition about what works.

Much of YouTube's revenue goes to the copyright holders of the videos.[283] 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.[307] In May 2013, Nintendo began enforcing its copyright ownership and claiming the advertising revenue from video creators who posted screenshots of its games.[308] In February 2015, Nintendo agreed to share the revenue with the video creators.[309][310][311]
In re: your second point, getting users to pay for content is absolutely part of the equation, but not the entire equation. The whole other half of it is creating ways to minimize the cut a middleman takes such that even if it’s zero sum game, more of the sum is going to the content creators, as well as developing new revenue streams that don’t require a direct cost from users to give direct profit to content creators.
The men know this with quantitative precision. YouTube analytics show exactly when a video’s audience falls off. ChuChu and other companies like it—whatever their larger philosophy—can see exactly what holds a toddler’s attention, moment by moment, and what causes it to drift. If a video achieves a 60 percent average completion rate, ChuChu knows it has a hit. Using these data doesn’t let it “crack the algorithm”; everyone has access to a version of these numbers. Instead, Chandar uses the analytics to tune his and other creators’ intuition about what works.
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.
The SEC late last year prodded the company to explain why it doesn’t share YouTube data, according to regulatory filings in February. Accounting rules require companies to disclose revenue for operating segments that account for 10% of a company’s total revenue, profit or combined assets. YouTube’s numbers are included in Alphabet’s advertising figure.
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.
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]
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