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.
ChuChu does not employ the weird keyword-stuffed titles used by lower-rent YouTube channels. The company’s titles are simple, sunny, consistent. Its theory of media is that good stuff wins, which is why its videos have won. “We know what our subscribers want, and we give it to them,” Chandar says. ChuChu says it adds roughly 40,000 subscribers a day.
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.
Another focus for the viral video platform has been supporting the many creators who have flocked there to create videos. Actress and comedian Grace Helbig, whose channel has 3 million subscribers, joined the site three years ago to start her show because of the creative freedom. “There are no gatekeepers,” said Helbig, who appeared onstage with Wojcicki.
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.
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In June 2007, YouTube began trials of a system for automatic detection of uploaded videos that infringe copyright. Google CEO Eric Schmidt regarded this system as necessary for resolving lawsuits such as the one from Viacom, which alleged that YouTube profited from content that it did not have the right to distribute.[333] The system, which was initially called "Video Identification"[334][335] and later became known as Content ID,[336] creates an ID File for copyrighted audio and video material, and stores it in a database. When a video is uploaded, it is checked against the database, and flags the video as a copyright violation if a match is found.[337] When this occurs, the content owner has the choice of blocking the video to make it unviewable, tracking the viewing statistics of the video, or adding advertisements to the video. By 2010, YouTube had "already invested tens of millions of dollars in this technology".[335] In 2011, YouTube described Content ID as "very accurate in finding uploads that look similar to reference files that are of sufficient length and quality to generate an effective ID File".[337] By 2012, Content ID accounted for over a third of the monetized views on YouTube.[338]
Frank Kameny, the last century’s greatest gay-rights activist, filed the first-ever Supreme Court petition challenging discrimination against homosexuals. He led some of the first gay-rights demonstrations. He was the first openly gay congressional candidate. He spearheaded the challenge to the psychiatric establishment’s categorization of homosexuality as a mental illness. He fought tirelessly against sodomy laws. He did a lot more than that. But there is one thing he never did—at least to my own recollection and that of associates of his whom I consulted. He did not use the term LGBTQ, or any of its variations.
YouTube offers users the ability to view its videos on web pages outside their website. Each YouTube video is accompanied by a piece of HTML that can be used to embed it on any page on the Web.[123] This functionality is often used to embed YouTube videos in social networking pages and blogs. Users wishing to post a video discussing, inspired by or related to another user's video are able to make a "video response". On August 27, 2013, YouTube announced that it would remove video responses for being an underused feature.[124] Embedding, rating, commenting and response posting can be disabled by the video owner.[125]

But even in relatively limited doses, these videos can affect young toddlers’ development. If kids watch a lot of fast-paced videos, they come to expect that that is how videos should work, which could make other educational videos less compelling and effective. “If kids get used to all the crazy, distracting, superfluous visual movement, then they may start requiring that to hold their attention,” Johnson says.
In December 2012, two billion views were removed from the view counts of Universal and Sony music videos on YouTube, prompting a claim by The Daily Dot that the views had been deleted due to a violation of the site's terms of service, which ban the use of automated processes to inflate view counts. This was disputed by Billboard, which said that the two billion views had been moved to Vevo, since the videos were no longer active on YouTube.[393][394] On August 5, 2015, YouTube removed the feature which caused a video's view count to freeze at "301" (later "301+") until the actual count was verified to prevent view count fraud.[395] YouTube view counts once again updated in real time.[396]

Additionally, in response to PewDiePie’s rec of the E;R channel, its owner described PewDiePie as producing “redpilled content.” And it’s easy to see why. Before declaring in 2017 that he would stop making Nazi jokes, PewDiePie made a whole lot of Nazi jokes. Even since then, he’s produced a long line of “satirical” videos and commentary that his alt-right followers have praised as examples of his “dropping redpills” on the rest of his fans.

The Death Note review that PewDiePie cited uses a racial slur to refer to one of the characters in the movie. The video also contains a reference to a false white nationalist conspiracy theory that Heather Heyer, the protester who was murdered at the white supremacist Unite the Right rally in Charlottesville, Virginia, in 2017 — and whose killer was recently convicted and sentenced to life in prison — actually died of a heart attack.

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.
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.

But from where I’m sitting, these videos are a lot like the TV show Jackass – which was on MTV between 2000 and 2002. The show featured self-injuring stunts including inserting a toy car into one cast member’s anus, snorting wasabi, and tattooing in a moving off-road vehicle. The show was broadcast before 10pm, prior to a campaign led by US Senator Joe Lieberman to remove it.
This might not exactly seem like a tragedy. After all, Americans watch a lot of TV. By the time Nielsen began recording how much time Americans spent in front of TV screens in 1949–50, each household was already averaging four hours and 35 minutes a day. That number kept going up, passing six hours in 1970–71, seven hours in 1983–84, all the way up to eight hours in 2003–04. Viewing finally peaked at eight hours and 55 minutes in 2009–10. Since then, the numbers have been gliding downward, with the most recent data showing Americans’ viewing habits edging under eight hours a day for the first time since George W. Bush’s presidency.
The way advertising works with YouTube is probably one of the most complicated things that comes with trying to make money off of YouTube. The real estimate comes out to about $7.50 per 1,000 impressions. The difficult part is actually defining the word ‘impressions.’ The only time you make money on YouTube is when someone interacts with your ad or when it leaves an ‘impression’ on them.
YouTube's still-rapid viewing growth -- driven by smartphones and to an extent connected TVs -- has a lot to do with its revenue momentum. At last week's NewFronts online video ad event, YouTube disclosed it now had over 1.8 billion monthly logged-in viewers, up from 1.5 billion as of last June. And back in February 2017, YouTube said it was seeing over a billion hours per day of viewing -- that's about three times what Netflix (NFLX) witnessed on a record-breaking day in January, and 10 times what YouTube saw back in 2012.
On January 27, 2015, YouTube announced that HTML5 would be the default playback method on supported browsers. YouTube used to employ Adobe Dynamic Streaming for Flash,[76] but with the switch to HTML5 video now streams video using Dynamic Adaptive Streaming over HTTP (MPEG-DASH), an adaptive bit-rate HTTP-based streaming solution optimizing the bitrate and quality for the available network.[77]