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I worry about these questions a lot, and I wonder if our 21st-century American institutions are up to the challenges they’ve created with their market successes and ethical abdications. Even so, when I visited Chennai, I felt okay about the media future we’re heading into. The toddler videos that ChuChu is posting on YouTube are cultural hybrids, exuberant and cosmopolitan, and in a philosophical sense they presuppose a world in which all children are part of one vast community, drawing on the world’s collective heritage of storytelling. That’s a rich narrative rootstock, with lots of lessons to teach—and right now who’s better poised to make the most of it than ChuChu and companies like it, especially if they can learn from the legacy of American educational TV?
ChuChu’s headquarters take up the entire first floor of a blue-glass building with bright-yellow stripes. Rows of animators flank a center aisle that houses big, colorful flourishes—weird chairs, structural columns with graffiti on them—signifying “fun tech office!” The work floor is ringed by maybe 10 offices that house the higher-ups. ChuChu says it employs about 200 people.
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.
On my last day in the ChuChu offices, Krishnan related a parable to me from the Mahābhārata, a Sanskrit epic. A prince wants to be known as generous, so the god Krishna decides to put him to the test: He creates two mountains of gold and tells the prince to give it all away in 24 hours. The prince begins to do so, parceling it out to people he thinks need it. But as the day ends he’s hardly made a dent in the mountains. So Krishna calls another prince and tells him he has just five minutes to give away the gold. This prince sees two people walking along, goes right over to them, and gives each a mountain. Just like that, the job is done. The moral is unsettling, but simple: Don’t impose limits on your generosity.

All that money is providing Google with more financial firepower to buy the rights to stream cable networks' shows on YouTube, too, which is likely to reel in even more viewers. It also is helping finance Alphabet's investments in projects such as self-driving cars and Internet-beaming balloons. That segment, known as Other Bets, lost $865 million during the July-September period, narrowing from a $980-million setback last year as Alphabet imposed more expense controls.


Pakistan blocked access on February 23, 2008, because of "offensive material" towards the Islamic faith, including display of the Danish cartoons of Muhammad.[415] This led to a near global blackout of the YouTube site for around two hours, as the Pakistani block was inadvertently transferred to other countries. On February 26, 2008, the ban was lifted after the website had removed the objectionable content from its servers at the request of the government.[416][417] Many Pakistanis circumvented the three-day block by using virtual private network software.[418] In May 2010, following the Everybody Draw Mohammed Day, Pakistan again blocked access to YouTube, citing "growing sacrilegious content".[419] The ban was lifted on May 27, 2010, after the website removed the objectionable content from its servers at the request of the government. However, individual videos deemed offensive to Muslims posted on YouTube will continue to be blocked.[420][421] Pakistan again placed a ban on YouTube in September 2012, after the site refused to remove the film Innocence of Muslims, with the ban still in operation as of September 2013.[422] The ban was lifted in January 2016 after YouTube launched a Pakistan-specific version.[423]

YouTube has taken steps in recent years to entice more direct users, like creating exclusive deals with popular content creators, including Michelle Phan and Epic Rap Battles, and redesigning its home page to make it more of a destination rather than a repository. It has also addressed the issue that YouTube's core audience is too narrowly dominated by young viewers and this year signed a content deal with the NFL to host game clips and interviews.
Of course, YouTube is funded by advertisers. So it makes sense to pay attention to their wants and desires. But under the current model, brands’ reactions are often a placeholder for third party regulation. And at the moment – as content creators are sketching the line for appropriate content – it is often advertisers who have the final say about acceptability.

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.
In late November 2018, YouTube announced that it would introduce a "Story" feature, similar to ones used by Instagram, Snapchat and Facebook, which would allow its content creators to engage fans without posting a full video.[119] The stories, called "Reels," would be up to 30 seconds in length and would allow users to add "filters, music, text and more, including new "YouTube-y" stickers." Unlike those of other platforms, YouTube's stories could be made multiple times and would not expire. Instead of being placed at the top of the user interface as is commonly done, the "Reels" option would be featured as a separate tab on the creator's channel.[120] As of its announcement, only certain content creators would have access to the "Reels" option, which would be utilized as a beta-version for further feedback and testing. If users engage more with the "Reels" option, it may end up as a more permanent feature and "trigger their appearance on the viewer's YouTube home page as recommendations." As of November 28, 2018, Youtube did not specify when "Reels" would arrive in Beta or when it would be publicly released.[119]

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.
All that money is providing Google with more financial firepower to buy the rights to stream cable networks' shows on YouTube, too, which is likely to reel in even more viewers. It also is helping finance Alphabet's investments in projects such as self-driving cars and Internet-beaming balloons. That segment, known as Other Bets, lost $865 million during the July-September period, narrowing from a $980-million setback last year as Alphabet imposed more expense controls.
Chandar met me and led me into a massive conference room. In addition to being the CEO, he composes music for ChuChu. He’s the public face of the company and, at 39, a few years younger than the other four founders, who each hold an equal stake. He sent a young man to get me a coffee, and then we sat down together with his friend B. M. Krishnan, a former accountant and a ChuChu co-founder who is now the company’s chief creative officer.
What kind of sales multiple does this fast-growing video juggernaut deserve? It's tough to think of a direct comparison. Netflix, which trades for over eight times its 2018 revenue consensus, relies on subscription revenue rather than ads. And whereas YouTube largely relies on ad revenue-sharing deals with content partners, Netflix directly pays its content partners for their material.
The second involves YouTube’s annual year-end “Rewind” video. The 2018 video, released on December 6 and described by YouTube as “a who’s who of internet culture,” omitted a number of popular YouTubers, most notably PewDiePie. In response, PewDiePie’s followers started a campaign encouraging people to vote down the video, with the result that within a matter of days, YouTube’s 2018 Rewind video has rapidly overtaken an eight-year-old Justin Bieber single to become the most disliked video in YouTube history, surpassing Bieber as of early Thursday morning at 9.8 million dislikes and counting. By Thursday afternoon, the dislikes had topped 10 million.

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.
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.
In April 2013, it was reported that Universal Music Group and YouTube have a contractual agreement that prevents content blocked on YouTube by a request from UMG from being restored, even if the uploader of the video files a DMCA counter-notice. When a dispute occurs, the uploader of the video has to contact UMG.[330][331] YouTube's owner Google announced in November 2015 that they would help cover the legal cost in select cases where they believe fair use defenses apply.[332]
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.
In September 2018, YouTube began to phase out the separate YouTube Gaming website and app, and introduced a new Gaming portal within the main service. YouTube staff argued that the separate platform was causing confusion, and that the integration would allow the features developed for the service (including game-based portals and enhanced discoverability of gaming-related videos and live streaming) to reach a broader audience through the main YouTube website.[69]
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