But recent research has painted another picture. Scoring a place in the top 3 percent of most-viewed channels could bring in ad revenues of just $16,800 per year, according to analysis for Bloomberg News by Mathias Bärtl, a professor at Offenburg University of Applied Sciences in Offenburg, Germany. If you quit your job, that's barely enough to break through the poverty line.
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?”)
Having outside income streams is especially important. After all, a change to how YouTube partners with and compensates creators could drastically shake up a YouTuber's ability to earn money with little warning. This happened in January, when the YouTube Partner Program boosted the eligibility requirements for monetization from 10,000 lifetime views to 4,000 hours of watch time within the previous year and 1,000 subscribers, leaving some content creators scrambling to reclaim their ability to earn money.
How many views does it take to make money on YouTube? This is a common question asked and it really depends on who you ask. You may have heard that you’ll make one dollar per thousand views or that it’s $1,000 per Million Views. Some say it’s $5 per thousand views. Well, we’re asking the wrong question. We should be asking, “How much ENGAGEMENT does it take to make money on YouTube?”
There are over a million members of the YouTube Partner Program. According to TubeMogul, in 2013 a pre-roll advertisement on YouTube (one that is shown before the video starts) cost advertisers on average $7.60 per 1000 views. Usually no more than half of eligible videos have a pre-roll advertisement, due to a lack of interested advertisers.
I’m sure you have seen a viral YouTube video. They come in all shapes and sizes—from super popular songs like “Watch Me (Whip/Nae Nae)” to a funny grumpy cat, someone falling down, or even something completely off the wall like Ylvis' “What Does the Fox Say?" video. What do they all have in common? Well, these posters all made a ton of money on YouTube when their videos went viral.
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. 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. In May 2013, YouTube launched a pilot program for content providers to offer premium, subscription-based channels within the platform. In February 2014, Susan Wojcicki was appointed CEO of YouTube. 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.
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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.
In a video posted on July 21, 2009, YouTube software engineer Peter Bradshaw announced that YouTube users could now upload 3D videos. The videos can be viewed in several different ways, including the common anaglyph (cyan/red lens) method which utilizes glasses worn by the viewer to achieve the 3D effect. The YouTube Flash player can display stereoscopic content interleaved in rows, columns or a checkerboard pattern, side-by-side or anaglyph using a red/cyan, green/magenta or blue/yellow combination. In May 2011, an HTML5 version of the YouTube player began supporting side-by-side 3D footage that is compatible with Nvidia 3D Vision. The feature set has since been reduced, and 3D feature currently only supports red/cyan anaglyph with no side-by-side support.
YouTube was founded by Chad Hurley, Steve Chen, and Jawed Karim, who were all early employees of PayPal. Hurley had studied design at Indiana University of Pennsylvania, and Chen and Karim studied computer science together at the University of Illinois at Urbana-Champaign. According to a story that has often been repeated in the media, Hurley and Chen developed the idea for YouTube during the early months of 2005, after they had experienced difficulty sharing videos that had been shot at a dinner party at Chen's apartment in San Francisco. Karim did not attend the party and denied that it had occurred, but Chen commented that the idea that YouTube was founded after a dinner party "was probably very strengthened by marketing ideas around creating a story that was very digestible".