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.
As far as I am presently aware, the true fact stands that YouTube is valued by multiple sources at around $100 billion, and they absolutely are taking a massive cut from content creators. Regardless of their exact numbers, the fact remains that they are taking a massive cut that could otherwise go directly to content creators, that absolutely, unequivocally makes the difference for many of those creators between profitability and operating at a loss.
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.
Where eyeballs go, money follows. “People giving up TV and getting video content through mobile devices is a huge trend, and brands are spending huge amounts to reach those audiences,” says Evan Asano, the CEO of MediaKix, an influencer marketing agency. “It’s a similar, if not bigger market for influencers than Instagram.” Another reason brands love YouTube is that its numbers are harder to fake. “You can buy views on YouTube, but it’s much more expensive than buying followers and likes on Instagram,” Asano says. “It’s pretty cost-prohibitive to drastically inflate a channel’s views on a consistent basis.”
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It's worth noting here that even Twitter (TWTR) , which is seeing minuscule monthly user and ad revenue growth, is valued at more than seven times its 2018 revenue consensus. And Snap (SNAP) , which (though seeing strong revenue growth) is contending with slowing user growth and faces big questions about its long-term profitability, is worth over 11 times its 2018 revenue consensus.
The survey was interested in the particulars of respondents’ anger. In its 14 pages, it sought an almost voyeuristic level of detail. It asked the woman to describe the stages of her fury, which words she had shouted, whether punches had been thrown. “In becoming angry, did you wish to get back at, or gain revenge?” the survey inquired. Afterward, did you feel “triumphant, confident and dominant” or “ashamed, embarrassed and guilty”? There were also questions for people like her husband, who had been on the receiving end: “Did the other person’s anger come as a surprise to you, or did you expect that it would occur?”
Don’t think watching someone play PS4 sounds like fun? Markiplier’s 22.4 million YouTube subscribers, with their 10 billion video views of his work, beg to differ. Indeed, Fischbach is one of five gamers on this year’s list. The top 10 YouTube stars earned an aggregate $180.5 million this past year, up 42% from 2017. It pays to play: Compared with other common YouTube categories, such as scripted comedy or elaborate pranks, gaming clips can be produced and edited quickly; some gamers post new footage daily. More posts mean more viewers, naturally—and more ad dollars. (The going rate for top online talent, Forbes estimates, is about $5 per thousand views.)
On November 3, 2016, YouTube announced a trial scheme which allows the creators of videos to decide whether to approve, hide or report the comments posted on videos based on an algorithm that detects potentially offensive comments. Creators may also choose to keep or delete comments with links or hashtags in order to combat spam. They can also allow other users to moderate their comments.
Chu Chu loved it. “She wanted me to repeat it again and again,” Chandar recalls. Which gave him an idea: “If she is going to like it, the kids around the world should like it.” He created a YouTube channel and uploaded the video. In a few weeks, it had 300,000 views. He made and uploaded another video, based on “Twinkle, Twinkle, Little Star,” and it took off. After posting just two videos, he had 5,000 subscribers to his channel. Someone from YouTube reached out and, as Chandar remembers it, said, “You guys are doing some magic with your content.” So Chandar and several of his friends formed a company in Chennai, in the South Indian state of Tamil Nadu, from the bones of an IT business they’d run. They hired a few animators and started putting out a video a month.
Observing that face-to-face communication of the type that online videos convey has been "fine-tuned by millions of years of evolution", TED curator Chris Anderson referred to several YouTube contributors and asserted that "what Gutenberg did for writing, online video can now do for face-to-face communication". Anderson asserted that it's not far-fetched to say that online video will dramatically accelerate scientific advance, and that video contributors may be about to launch "the biggest learning cycle in human history." In education, for example, the Khan Academy grew from YouTube video tutoring sessions for founder Salman Khan's cousin into what Forbes' Michael Noer called "the largest school in the world", with technology poised to disrupt how people learn. YouTube was awarded a 2008 George Foster Peabody Award, the website being described as a Speakers' Corner that "both embodies and promotes democracy." The Washington Post reported that a disproportionate share of YouTube's most subscribed channels feature minorities, contrasting with mainstream television in which the stars are largely white. A Pew Research Center study reported the development of "visual journalism", in which citizen eyewitnesses and established news organizations share in content creation. The study also concluded that YouTube was becoming an important platform by which people acquire news.
So far, though, this has all proved to be mostly idle speculation. Analysts say Google has not been bidding aggressively to win streaming rights. It's not clear whether YouTube, long the top video site overall in unique visitors, aims to be the No. 1 aggregator of all video, says Joel Espelien, an analyst at the Diffusion Group, a video-focused research firm.
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.
The results reflect YouTube’s struggles to expand its core audience beyond teens and tweens. Many YouTube users treat the site as a video repository to be accessed from links or embedded video players posted elsewhere, rather than visiting YouTube.com daily. Google executives want them to turn on YouTube the way they turn on television, as a habit, where they can expect to find different “channels” of entertainment.
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".