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.
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.
National Geographic magazine has announced the winning entries in its annual photo competition. The grand-prize winner this year is Jassen Todorov, who will take home a $5,000 prize for his aerial image of thousands of recalled Volkswagen and Audi cars in the Mojave Desert. The contest organizers have shared with us the top winners and honorable mentions below, selected from a pool of nearly 10,000 entries. Captions are written by the individual photographers and lightly edited for content.
Much of YouTube's revenue goes to the copyright holders of the videos. In 2010, it was reported that nearly a third of the videos with advertisements were uploaded without permission of the copyright holders. YouTube gives an option for copyright holders to locate and remove their videos or to have them continue running for revenue. In May 2013, Nintendo began enforcing its copyright ownership and claiming the advertising revenue from video creators who posted screenshots of its games. In February 2015, Nintendo agreed to share the revenue with the video creators.
Scenario 2 You make a video teaching people about home loans that gets 10,000 views, of which your ad Click Through Rate (CTR) is 0.8%. Meaning 80 people clicked the ad. If the CPC is $17.63 the total advertising dollars the total advertising made would be $1,410. Google keeps around 45% leaving your payout $776. This gives you about $1 per 13 views.
YouTube carried out early experiments with live streaming, including a concert by U2 in 2009, and a question-and-answer session with US President Barack Obama in February 2010. These tests had relied on technology from 3rd-party partners, but in September 2010, YouTube began testing its own live streaming infrastructure. In April 2011, YouTube announced the rollout of YouTube Live, with a portal page at the URL "www.youtube.com/live". The creation of live streams was initially limited to select partners. It was used for real-time broadcasting of events such as the 2012 Olympics in London. In October 2012, more than 8 million people watched Felix Baumgartner's jump from the edge of space as a live stream on YouTube.
Previously, viewing YouTube videos on a personal computer required the Adobe Flash Player plug-in to be installed in the browser. In January 2010, YouTube launched an experimental version of the site that used the built-in multimedia capabilities of web browsers supporting the HTML5 standard. This allowed videos to be viewed without requiring Adobe Flash Player or any other plug-in to be installed. The YouTube site had a page that allowed supported browsers to opt into the HTML5 trial. Only browsers that supported HTML5 Video using the MP4 (with H.264 video) or WebM (with VP8 video) formats could play the videos, and not all videos on the site were available.
If your end goal is to actually make money from videos, there’s a far better option than simply relying on your measly allocation of ad revenue. Instead, create a YouTube channel and build an audience. The primary goal is to engage this audience and build a brand name. Then, once you've established a reputation, begin driving traffic to your own landing pages where you can up-sell viewers with premium video content.
As it became clear that ChuChu videos were being watched by millions of people on six continents, Krishnan and Chandar started branching out into original songs and nursery rhymes, which Krishnan has been writing for the past couple of years. Their content runs the gamut, from an adaptation of “Here We Go Round the Mulberry Bush,” dedicated to tree planting as a way to fight global warming, to “Banana Song” (“Na na na banana / long and curved banana”).
Individuals and businesses make millions of dollars through YouTube advertising, but there are risks to using a platform controlled by another company. Not only is there a chance that a change in Google's search algorithms could make or break video traffic, but Google also takes a hefty 45 percent cut of revenue from video advertising. Nevertheless, YouTube is a massive platform and is the world's second largest search engine after Google, which includes YouTube videos in search results. If the benefits of reaching YouTube's large audience and having Google handle the most labor-intensive parts of building an advertising network outweigh the costs and risks, this platform is a great resource for turning videos into cash.
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.
7. Turn to crowdfunding: There are two primary types of crowdfunding: recurring and project-based. Recurring crowdfunding lets contributors pay an amount they specify on a regular schedule. You’d want to maximize this type of funding in order to turn a channel into a substantial income stream. Incentives such as one-on-one video chats, private classes or merchandise can entice viewers to sign up.
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.”
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.
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.