“The way YouTube is distributed is not always conducive to ad revenue,” said Tim Bajarin, principal analyst with Campbell-based Creative Strategies, which tracks the the technology sector. “The YouTube ads are on the side, but they are not embedded in the programming, like you see in television.” The current YouTube format might be good for consumers, but that doesn’t mean it’s all that great for the bottom line, Bajarin said. “They are going to have to change things up,” Bajarin said.
Instead, YouTube success takes time and dedication. Kelli Segars, the co-counder of Fitness Blender, a YouTube channel with over 5 million subscribers, spent two years posting new workout videos every week before she and her husband could quit their day jobs in 2010 to focus on the brand full time. Still, without YouTube, Fitness Blender probably wouldn’t exist. “When we first set out to create free online workout videos, we found that most streaming platforms charged so much to host content that we were never going to be able to break into the industry at all, let alone offer free content to our (then nonexistent) audience,” says Segars.

YouTube is one of the most popular websites on the planet, receiving billions of views a year and paying out millions to the content creators that it hosts. Money earned through YouTube is generated by advertisements. Content creators who host ads on their videos receive about half of the ad revenue those ads generate, while YouTube takes the rest. Anyone can monetize their videos, as long as their videos do not break copyright law.
In February 2015, YouTube released a secondary mobile app known as YouTube Kids. The app is designed to provide an experience optimized for children. It features a simplified user interface, curated selections of channels featuring age-appropriate content, and parental control features.[60] Later on August 26, 2015, YouTube launched YouTube Gaming—a video gaming-oriented vertical and app for videos and live streaming, intended to compete with the Amazon.com-owned Twitch.[61]
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.
In January 2018, the 23-year-old elder Paul brother was kicked off YouTube’s Google Preferred program, which gives favorable ad rates to popular channels, after he filmed a video in Japan that showed an apparent suicide hanging from a tree. He apologized. His income from videos (pratfalls, pranks) and brand deals took a hit, but loyal fans kept his hefty merchandise business afloat.
They could even offer faster encoders for people uploading videos to youtube so it didn’t take so long as a premium feature and I think a lot of streamers would pay a few bucks to have more control over their stream. I’ve never really put much thought into it but I’m sure they could do a whole bunch of things before they resort to the need to make youtube suck in order to keep the lights on.
In any case, if you have incontrovertible evidence that YouTube is actually unprofitable today, and why that is (i.e. is it because they’re just investing all that profit back into growth, or are their upkeep costs truly just on the order of multiple billions of dollars?), would love to see it and adjust this accordingly. Doesn’t really change any of the points made though.

Karim said the inspiration for YouTube first came from Janet Jackson's role in the 2004 Super Bowl incident, when her breast was exposed during her performance, and later from the 2004 Indian Ocean tsunami. Karim could not easily find video clips of either event online, which led to the idea of a video sharing site.[9] Hurley and Chen said that the original idea for YouTube was a video version of an online dating service, and had been influenced by the website Hot or Not.[8][10]
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