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 order to earn revenue on a video, you need to first post videos on your YouTube account. You can create and edit your videos in advance using an editing program such as Adobe (ADBE) Premier or Apple’s (AAPL) iMovie, or you can upload a raw video from your phone or computer and use the YouTube video editor. Once your video is online, you need people to watch it. Promote your content on social networks, to family and friends, on blogs, Tumblr (YHOO), and any other possible digital outlet. More views means more money in your pocket.
On February 28, 2017, in a press announcement held at YouTube Space Los Angeles, YouTube announced the launch of YouTube TV, an over-the-top MVPD-style subscription service that would be available for United States customers at a price of US$35 per month. Initially launching in five major markets (New York City, Los Angeles, Chicago, Philadelphia and San Francisco) on April 5, 2017, the service offers live streams of programming from the five major broadcast networks (ABC, CBS, The CW, Fox and NBC), as well as approximately 40 cable channels owned by the corporate parents of those networks, The Walt Disney Company, CBS Corporation, 21st Century Fox, NBCUniversal and Turner Broadcasting System (including among others Bravo, USA Network, Syfy, Disney Channel, CNN, Cartoon Network, E!, Fox Sports 1, Freeform, FX and ESPN). Subscribers can also receive Showtime and Fox Soccer Plus as optional add-ons for an extra fee, and can access YouTube Premium original content (YouTube TV does not include a YouTube Red subscription).
Both private individuals and large production companies have used YouTube to grow audiences. Independent content creators have built grassroots followings numbering in the thousands at very little cost or effort, while mass retail and radio promotion proved problematic. Concurrently, old media celebrities moved into the website at the invitation of a YouTube management that witnessed early content creators accruing substantial followings, and perceived audience sizes potentially larger than that attainable by television. While YouTube's revenue-sharing "Partner Program" made it possible to earn a substantial living as a video producer—its top five hundred partners each earning more than $100,000 annually and its ten highest-earning channels grossing from $2.5 million to $12 million—in 2012 CMU business editor characterized YouTube as "a free-to-use ... promotional platform for the music labels". In 2013 Forbes' Katheryn Thayer asserted that digital-era artists' work must not only be of high quality, but must elicit reactions on the YouTube platform and social media. Videos of the 2.5% of artists categorized as "mega", "mainstream" and "mid-sized" received 90.3% of the relevant views on YouTube and Vevo in that year. By early 2013 Billboard had announced that it was factoring YouTube streaming data into calculation of the Billboard Hot 100 and related genre charts.
There are over a million members of the YouTube Partner Program. According to TubeMogul, in 2013 a pre-roll advertisement on YouTube (one that is shown before the video starts) cost advertisers on average $7.60 per 1000 views. Usually no more than half of eligible videos have a pre-roll advertisement, due to a lack of interested advertisers.
After all, relatability is a YouTuber’s greatest asset — along with a willingness to keep plugging away. “If you’re passionate about it, you really increase your chances of success,” says Asano. “It’s a lot of work. To produce just one video, you need camera equipment, a computer to edit it on, and time. And if you’re just starting out, you’re not going to get paid for a while because you need to build your subscribers. Don’t do it because you think you’re going to make an easy buck, because it’s not.”
YouTube has enabled people to more directly engage with government, such as in the CNN/YouTube presidential debates (2007) in which ordinary people submitted questions to U.S. presidential candidates via YouTube video, with a techPresident co-founder saying that Internet video was changing the political landscape. Describing the Arab Spring (2010– ), sociologist Philip N. Howard quoted an activist's succinct description that organizing the political unrest involved using "Facebook to schedule the protests, Twitter to coordinate, and YouTube to tell the world." In 2012, more than a third of the U.S. Senate introduced a resolution condemning Joseph Kony 16 days after the "Kony 2012" video was posted to YouTube, with resolution co-sponsor Senator Lindsey Graham remarking that the video "will do more to lead to (Kony's) demise than all other action combined."
Once you link your AdSense account to your YouTube account, you will receive credit for each video’s monthly revenue. Once you accumulate $100 in earnings, Google will issue a payment to your bank account. You can choose to be paid via direct deposit (not available in all countries) or check—direct deposit is the fastest method and has no fee. If you are located in the United States and earn more than $600 per year, Google will issue a 1099 form. Either way, you are required to pay income tax on your earnings.
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.
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.
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.
It helps, too, that the same young viewers who eschew television in favor of YouTube are bonkers for video games. “Ten to 15 years ago, gaming wasn’t cool. You didn’t game because it was cool, you gamed because you loved it,” says David Huntzinger, a digital-talent agent at WME. “Now you have Drake going on Twitch and playing Fortnite, and [professional] athletes in the locker room saying they can’t stop playing Xbox—it’s what these kids are living and breathing.”
In 2013, YouTube introduced an option for channels with at least a thousand subscribers to require a paid subscription in order for viewers to watch videos. In April 2017, YouTube set an eligibility requirement of 10,000 lifetime views for a paid subscription. On January 16, 2018, the eligibility requirement for monetization was changed to 4,000 hours of watchtime within the past 12 months and 1,000 subscribers. The move was seen as an attempt to ensure that videos being monetized did not lead to controversy, but was criticized for penalizing smaller YouTube channels.
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Finally, leverage your YouTube reputation and attract live speaking engagements. If the YouTube channel you produce is focused on a specific niche or audience, do some research about annual conferences or other industry events that have keynote speakers. Then, utilize your YouTube statistics and some of your best clips, to put together a package and pitch to the directors of these events.
YouTube allows users to upload, view, rate, share, add to favorites, report, comment on videos, and subscribe to other users. It offers a wide variety of user-generated and corporate media videos. Available content includes video clips, TV show clips, music videos, short and documentary films, audio recordings, movie trailers, live streams, and other content such as video blogging, short original videos, and educational videos. Most of the content on YouTube is uploaded by individuals, but media corporations including CBS, the BBC, Vevo, and Hulu offer some of their material via YouTube as part of the YouTube partnership program. Unregistered users can only watch videos on the site, while registered users are permitted to upload an unlimited number of videos and add comments to videos. Videos deemed potentially inappropriate are available only to registered users affirming themselves to be at least 18 years old.