Facebook (FB) , which trades for about nine times its 2018 revenue consensus, is still seeing 40%-plus revenue growth and has some big growth levers left to press, is arguably a better comp for YouTube, given its business model, network effect and market dominance. But Facebook is quite profitable -- in spite of heavy spending on data centers and content security, Facebook's 2018 net income consensus stands at $22.5 billion -- and based on comments made by YouTube CEO Susan Wojcicki and others -- YouTube's profits might still be minimal thanks to large data center and content investments.
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A TiVo service update in July 2008 allowed the system to search and play YouTube videos. In January 2009, YouTube launched "YouTube for TV", a version of the website tailored for set-top boxes and other TV-based media devices with web browsers, initially allowing its videos to be viewed on the PlayStation 3 and Wii video game consoles. In June 2009, YouTube XL was introduced, which has a simplified interface designed for viewing on a standard television screen. YouTube is also available as an app on Xbox Live. On November 15, 2012, Google launched an official app for the Wii, allowing users to watch YouTube videos from the Wii channel. An app is also available for Wii U and Nintendo 3DS, and videos can be viewed on the Wii U Internet Browser using HTML5. Google made YouTube available on the Roku player on December 17, 2013, and, in October 2014, the Sony PlayStation 4. In November 2018, YouTube launched as a downloadable app for the Nintendo Switch.
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.
Knowing who you are and, perhaps more importantly, who your audience is will make you attractive to advertisers, sponsors and partners outside the YouTube sphere, experts say. Make sure to also set yourself up as someone who is "brand safe," says Tyler Vaught, head of Niche, Twitter's service that connects creators worldwide with brands to develop branded content. That could mean not using profanities, avoiding charged political topics and dodging drug references and other controversial topics on your channel.
You’ve probably heard stories about regular people earning money on YouTube and thought, “Hey, I can do this too!”. While earning thousands of dollars probably isn’t realistic, you can start earning money quickly, especially if you have a strong subscriber base. Follow this guide to get your videos monetized and start earning revenue off of those YouTube ads.
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.
An independent test in 2009 uploaded multiple versions of the same song to YouTube, and concluded that while the system was "surprisingly resilient" in finding copyright violations in the audio tracks of videos, it was not infallible. The use of Content ID to remove material automatically has led to controversy in some cases, as the videos have not been checked by a human for fair use. If a YouTube user disagrees with a decision by Content ID, it is possible to fill in a form disputing the decision. Prior to 2016, videos weren't monetized until the dispute was resolved. Since April 2016, videos continue to be monetized while the dispute is in progress, and the money goes to whoever won the dispute. Should the uploader want to monetize the video again, they may remove the disputed audio in the "Video Manager". YouTube has cited the effectiveness of Content ID as one of the reasons why the site's rules were modified in December 2010 to allow some users to upload videos of unlimited length.
Other, more intense measures could help, too. For example, how about restricting toddler videos to the YouTube Kids app? Toddler content could, in effect, be forbidden on the main platform. If video makers wanted their work on the YouTube Kids app, they’d have to agree to have it only on the Kids app. This might hurt their view counts initially, but it would keep kids in a safer environment, and in the long term would protect the brand from the inevitable kid-related scandals. The issue of inappropriate videos popping up in YouTube Kids has received a good deal of national press—but society can live with a tiny sliver of bad things slipping through the company’s filters. It’s a small issue compared with kids watching billions of videos on regular YouTube. Why worry about the ways a kid could hurt himself in a padded room, when huge numbers of kids are tromping around the virtual city’s empty lots? (Ducard said that YouTube knows families watch videos together: “That’s why this content is available on our main YouTube site and also on our YouTube Kids app.”)
All YouTube users can upload videos up to 15 minutes each in duration. Users who have a good track record of complying with the site's Community Guidelines may be offered the ability to upload videos up to 12 hours in length, as well as live streams, which requires verifying the account, normally through a mobile phone. When YouTube was launched in 2005, it was possible to upload longer videos, but a ten-minute limit was introduced in March 2006 after YouTube found that the majority of videos exceeding this length were unauthorized uploads of television shows and films. The 10-minute limit was increased to 15 minutes in July 2010. In the past, it was possible to upload videos longer than 12 hours. Videos can be at most 128 GB in size. Video captions are made using speech recognition technology when uploaded. Such captioning is usually not perfectly accurate, so YouTube provides several options for manually entering the captions for greater accuracy.
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.
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.
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 first two steps in earning online revenue with YouTube is to open an account and turn on account monetization. Enabling monetization requires accepting YouTube’s advertising guidelines and connecting to an AdSense account for payment. Enabling ads on your YouTube videos requires agreeing to Google’s ad revenue share for YouTube. There is a 45/55 split for all content creators, so Google keeps 45 percent of all YouTube advertising on your videos, and you get the remaining 55 percent.
Facebook and Twitter could pose new challenges to YouTube, because those social networks are creating their own video services. “If YouTube wants to move towards strong profitability, or to be profitable, they are gong to have to take that advertising and make it part of any actual programming,” Bajarin said. “And one way to have control over all that is to create their own content.”
In December 2011, YouTube launched a new version of the site interface, with the video channels displayed in a central column on the home page, similar to the news feeds of social networking sites. At the same time, a new version of the YouTube logo was introduced with a darker shade of red, the first change in design since October 2006. In May 2013, YouTube launched a pilot program for content providers to offer premium, subscription-based channels within the platform. In February 2014, Susan Wojcicki was appointed CEO of YouTube. In November 2014, YouTube announced a subscription service known as "Music Key", which bundled ad-free streaming of music content on YouTube with the existing Google Play Music service.