For people who dream of making money on YouTube, there are lots of online celebrities and channels to aspire to imitate. There's makeup superstar James Charles, who became the first male CoverGirl model. Liza Koshy's fame on Vine and then YouTube has led to traditional film and TV gigs, including a role in a Tyler Perry film. Even pop star Justin Bieber got his start on YouTube. According to YouTube, the number of channels that earned five figures or more grew by more than 50 percent from July 2017 to July 2018. Channels earning six figures per year increased by 40 percent.
Videos with progressive scanning or interlaced scanning can be uploaded, but for the best video quality, YouTube suggests interlaced videos be deinterlaced before uploading. All the video formats on YouTube use progressive scanning.[84] YouTube's statistics shows that interlaced videos are still being uploaded to YouTube, and there is no sign of that actually dwindling. YouTube attributes this to uploading of made-for-TV content.[85]
ChuChu is largely making things up as it goes, responding—as any young company would—to what its consumers want. Despite the company’s earnest desire to educate the kids who watch its videos, it has not tried to use the lessons generated by previous generations of educational-TV makers. Its executives and developers don’t regularly work with academics who could help them shape their content to promote healthy development of young brains. So what effects are ChuChu’s shows having on kids? How does what it’s producing compare with whatever kids were watching before?
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.
YouTube Play Buttons, a part of the YouTube Creator Rewards, are a recognition by YouTube of its most popular channels.[304] The trophies made of nickel plated copper-nickel alloy, golden plated brass, silver plated metal and ruby are given to channels with at least one hundred thousand, a million, ten million and fifty million subscribers, respectively.[305][306]
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]
^ Popper, Ben (November 9, 2017). "YouTube says it will crack down on bizarre videos targeting children". The Verge. Archived from the original on November 16, 2017. In August of this year, YouTube announced that it would no longer allow creators to monetize videos which "made inappropriate use of family friendly characters." Today it's taking another step to try and police this genre.

On April 6, 2017, YouTube announced that in order to "ensure revenue only flows to creators who are playing by the rules", it would change its practices to require that a channel undergo a policy compliance review, and have at least 10,000 lifetime views, before they may join the Partner Program.[360] On January 16, 2018, YouTube announced tighter thresholds where creators must have at least 4,000 hours of watch time within the past 12 months and at least 1,000 subscribers.[361]


In a widely circulated essay last year, the artist James Bridle highlighted the many violent, odd, and nearly robotic children’s videos sitting in the vaults of YouTube. They didn’t seem made by human hands, he wrote, or at least not completely. Some were sadistic or sick. (After Bridle’s essay was published, YouTube undertook an effort to purge the site of “content that attempts to pass as family-friendly, but clearly is not,” and ultimately removed some of the disturbing videos the essay cited.) Others seemed like grab bags of keywords that had been successful for more professional operations: nursery rhymes, surprise eggs, finger family, learning colors. These were videos reverse engineered from whatever someone might enter into the YouTube search box. And though none of these videos has achieved the scale of ChuChu’s work, they definitely get seen, and are occasionally recommended to a child who has been happily watching something more virtuous.


Surf around YouTube and click through the most-viewed video clips to get an idea of the types of videos that garner the most hits. Everything from original music to product reviews, pranks, and even video blogs create interest on YouTube. The goal is to create an audience, so use your webcam or digital video camera to garner interest. Remember that YouTube does not allow pornographic images, nor can you make money from cover songs to which you do not own the rights.
Regardless of the exact number, it's safe to assume that YouTube's ad sales are growing at a rapid clip. On its earnings calls, Google has signaled that outside of mobile search, YouTube has been the biggest driver behind its rapid ad sales growth. Last quarter, "paid clicks" on Google's own sites and apps rose 59% annually -- this figure covers not only actual ad clicks, but (among other things) the showing of YouTube video ads that were watched long enough for Google to get paid.
YouTube has focused on developing online personalities such as video game player PewDiePie, music video specialist Smosh and style guru Michelle Phan. Driving much of the traffic to YouTube, analysts say, are multichannel networks such as Fullscreen, Maker Studios, SonyBMG and Whistle Sports. Google has bought stakes in multichannel networks such as Vevo and Machinima, analysts say, to ensure their content stays on its website.
As more advertising dollars flow to YouTube, it's making the already hugely profitable Google even more prosperous. On Thursday, Google's corporate parent — Alphabet Inc., based in Mountain View, Calif. — said the company overall earned $5.1 billion, or $7.25 a share in the third quarter, up 27% from the same quarter last year. After subtracting advertising commissions, revenue climbed 21% to $18.3 billion. Both figures beat analyst projections.
Also in November 2017, it was revealed in the media that many videos featuring children – often uploaded by the minors themselves, and showing innocent content – were attracting comments from pedophiles[376][377] and circulating on the dark web, with predators finding the videos by typing in certain keywords in Russian.[377] As a result of the controversy, which added to the concern about "Elsagate", several major advertisers whose ads had been running against such videos froze spending on YouTube.[378][369]
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.
For kids to have the best chance of learning from a video, Johnson told me, it must unfold slowly, the way a book does when it is read to a child. “Calmer, slower-paced videos with less distracting features are more effective for younger children,” she said. “This also allows the video to focus attention on the relevant visuals for the song, thus aiding in comprehension.”

But sponsorships are where the big bucks are made, and where intermediaries like MediaKix and other agencies come in. This is the major leagues: Most brands aren’t interested in YouTube channels with fewer than 200,000 to 300,000 subscribers or average views of less than 10,000 to 20,000 per video, says Asano. The bar is also high because videos cost more to make, and require tricky negotiations —the sponsor will want to know where their product will be featured, for how long, and so forth. “When we’re connecting top brands with top influencers on YouTube, you’re talking a minimum budget of $50,000 to $100,000, and it just goes up from there,” Asano explains. “Some of the biggest YouTube influencers get paid $100,000 to 200,000 for a single video. And then those videos get millions of views. That’s why there’s a lot of money in the space.”
These two ends of a vast YouTube spectrum have clashed recently over two interesting and arguably related phenomena — both of which directly involve PewDiePie. The first is an ongoing battle that PewDiePie’s supporters have been waging in order to prevent his channel from being surpassed as the most popular one on YouTube. To keep this from happening, they’ve done everything from take out a Times Square billboard to reportedly hacking into 50,000 printers around the world in order to promote their “subscribe to PewDiePie” meme.
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.
This year, Heather Hund and her family will gather in West Texas on December 25 and solidify a new Christmas tradition, in which each relative is randomly assigned to give a gift to another family member and to a house pet. “The rules are basically a regift for the human and then $10 for the pet,” Hund told me. “And my 18-month-old son got put in [the latter] category too, so it’s small humans and small animals.”
In August 2008, a US court ruled in Lenz v. Universal Music Corp. that copyright holders cannot order the removal of an online file without first determining whether the posting reflected fair use of the material. The case involved Stephanie Lenz from Gallitzin, Pennsylvania, who had made a home video of her 13-month-old son dancing to Prince's song "Let's Go Crazy", and posted the 29-second video on YouTube.[325] In the case of Smith v. Summit Entertainment LLC, professional singer Matt Smith sued Summit Entertainment for the wrongful use of copyright takedown notices on YouTube.[326] He asserted seven causes of action, and four were ruled in Smith's favor.[327]
We have strict rules on what's allowed, and a system that enables anyone who sees inappropriate content to report it to our 24/7 review team and have it dealt with promptly. We educate our community on the rules and include a direct link from every YouTube page to make this process as easy as possible for our users. Given the volume of content uploaded on our site, we think this is by far the most effective way to make sure that the tiny minority of videos that break the rules come down quickly.[347] (July 2008)
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]
ChuChu has changed over time—it has slowed the pacing of its videos, focused on the key elements of scenes, and made more explicitly educational videos. But in the wilds of YouTube, the videos with the most views, not the most educational value, are the ones that rise to the top. ChuChu’s newer videos, which have more of the features Johnson looks for, have not had the time to hoover up as much attention, so the old ones keep appearing in YouTube searches and suggestions.

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.

New challengers also add urgency to her task. Facebook and Twitter Inc., which routinely send traffic to YouTube, are building their own video offerings. Facebook, and startups such as Vessel, are trying to poach YouTube stars. Meanwhile, Amazon.com Inc. and Netflix Inc. are changing the image of “online video” by licensing Hollywood-produced content and creating original programming.


The idea of making millions off of videos the way YouTubers like PewDiePie famously have certainly seems like a pseudo-new-American Dream. And while not all of us will reach internet stardom with our videos, it might be worth looking into how you could make a few dimes from the popular platform. So, how do you make money from YouTube, and what will you need? 
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.
On one side lies many overlapping subcultures that make up huge swaths of the YouTube populations: its tremendous gaming communities, including Let’s Play-ers, live streamers, machinima-style editors, and vloggers; its prank cultures and their overlap with stunt personalities like Jake and Logan Paul; and its increasingly insidious alt-right presence.
This means that if someone skips an ad, or is running an ad blocker, then you don’t get paid for that view. This makes estimating the amount of views a video has and how much a user makes off of the video very challenging. It also depends if it’s a video ad at the front of your video, or just a box at the bottom of your page; this determines how many people interact with your ad and the amount of money that can be made.
But sponsorships are where the big bucks are made, and where intermediaries like MediaKix and other agencies come in. This is the major leagues: Most brands aren’t interested in YouTube channels with fewer than 200,000 to 300,000 subscribers or average views of less than 10,000 to 20,000 per video, says Asano. The bar is also high because videos cost more to make, and require tricky negotiations —the sponsor will want to know where their product will be featured, for how long, and so forth. “When we’re connecting top brands with top influencers on YouTube, you’re talking a minimum budget of $50,000 to $100,000, and it just goes up from there,” Asano explains. “Some of the biggest YouTube influencers get paid $100,000 to 200,000 for a single video. And then those videos get millions of views. That’s why there’s a lot of money in the space.”
Like any good mogul, Fischbach is diversifying: In October, he cofounded an athleisure line, Cloak, with fellow list member Seán McLoughlin, better known as “Jacksepticeye” (No. 8, $16 million). The workout line includes $85 sweaters and $35 T-shirts. Even if they intend to exercise nothing more than their thumbs, fans have snapped the gear up: The presale items sold out in 48 hours. 
5. Sell products or services to viewers: If you have merchandise or offer a service that’s relevant to your audience, let them know about it and provide links in your videos. For example, comedian Jenna Mourey, more commonly known by her YouTube name Jenna Marbles, sells T-shirts and posters featuring one of her dogs. Selling a physical product might require you to buy materials or find a manufacturer, but you can also sell downloadables such as e-books or art prints. Have a secure payment system in place before you advertise your goods.
YouTube originally offered videos at only one quality level, displayed at a resolution of 320×240 pixels using the Sorenson Spark codec (a variant of H.263),[86][87] with mono MP3 audio.[88] In June 2007, YouTube added an option to watch videos in 3GP format on mobile phones.[89] In March 2008, a high-quality mode was added, which increased the resolution to 480×360 pixels.[90] In November 2008, 720p HD support was added. At the time of the 720p launch, the YouTube player was changed from a 4:3 aspect ratio to a widescreen 16:9.[91] With this new feature, YouTube began a switchover to H.264/MPEG-4 AVC as its default video compression format. In November 2009, 1080p HD support was added. In July 2010, YouTube announced that it had launched a range of videos in 4K format, which allows a resolution of up to 4096×3072 pixels.[92][93] In June 2015, support for 8K resolution was added, with the videos playing at 7680×4320 pixels.[94] In November 2016, support for HDR video was added which can be encoded with Hybrid Log-Gamma (HLG) or Perceptual Quantizer (PQ).[95] HDR video can be encoded with the Rec. 2020 color space.[96]
×