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.
The good news is that income is rising, but efforts to generate a broad and loyal audience that turn to the service on a regular basis for original content appear to have hit a wall. The Journal points out how three years ago YouTube spent hundreds of millions of dollars on original content to build new channels, only to see many of them fail. Getting people to visit the site directly and regularly because there’s something specific they want to see, rather than dropping by occasionally via a link on another site or online service, appears to be a big challenge for the company.
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.
Congress held hearings on television’s possible deleterious effects on children (and adults) in 1952, 1954, and 1955. But not much happened, and the government and TV networks generally settled into a cycle that has been described by the media scholar Keisha Hoerrner. “First,” she has written, “the government castigated the industry for its deplorable programming, then the industry took its verbal punishment and promised to do better, followed by the government staying out of the industry’s business.”

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?”)
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.
They could even offer faster encoders for people uploading videos to youtube so it didn’t take so long as a premium feature and I think a lot of streamers would pay a few bucks to have more control over their stream. I’ve never really put much thought into it but I’m sure they could do a whole bunch of things before they resort to the need to make youtube suck in order to keep the lights on.
Among the specific findings, researchers demonstrated that Sesame Street improved children’s vocabulary, regardless of their parents’ education or attitudes. Another study found that regular adult TV stunted vocabulary development, while high-quality educational programs accelerated language acquisition. The most fascinating study began in the 1980s, when a University of Massachusetts at Amherst team installed video cameras in more than 100 homes, and had those families and hundreds of others keep a written log of their media diet. Following up more than a decade later, researchers found that “viewing educational programs as preschoolers was associated with higher grades, reading more books, placing more value on achievement, greater creativity, and less aggression.” On the flip side, violent programming led to lower grades among girls, in particular. The team was unequivocal about the meaning of these results: What kids watched was much more important than how much of it they watched. Or, as the researchers’ refutation of Marshall McLuhan’s famous aphorism went, “The medium is not the message: The message is.”
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.
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.
If your end goal is to actually make money from videos, there’s a far better option than simply relying on your measly allocation of ad revenue. Instead, create a YouTube channel and build an audience. The primary goal is to engage this audience and build a brand name. Then, once you've established a reputation, begin driving traffic to your own landing pages where you can up-sell viewers with premium video content.
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.
In December 2011, YouTube launched a new version of the site interface, with the video channels displayed in a central column on the home page, similar to the news feeds of social networking sites.[54] At the same time, a new version of the YouTube logo was introduced with a darker shade of red, the first change in design since October 2006.[55] In May 2013, YouTube launched a pilot program for content providers to offer premium, subscription-based channels within the platform.[56][57] In February 2014, Susan Wojcicki was appointed CEO of YouTube.[58] In November 2014, YouTube announced a subscription service known as "Music Key", which bundled ad-free streaming of music content on YouTube with the existing Google Play Music service.[59]
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