YouTube is undoubtedly one of the big names in the world of internet and largest platform for video-sharing. Each day millions of people log in, watch and upload video contents in the site. Videos consisting 500 hours watch time are uploaded every minute in the site and this really counts for the site developers. For users, YouTube definitely is a source of entertainment and information but what about the developers and people uploading contents? Whats in it for them? Have you ever wondered?
Here lies questions to your questions and curiosity. Let’s start it then!
YouTube Revenue Model
Have you ever noticed a small block of advertisement featuring different brands somewhere in the video while you-tubing? Yes! That’s the answer! That block of advertisement is the core of revenue model.
When user views of video, an ad appears in the screen of user promoting different brands. The content up-loader gets money when users view that ad. But, for that, the channel must first enable monetization. Monetization can be enabled anytime however, the revenue only starts coming in when the channel has acquired large base of loyal users.
The content up-loader, however, doesn’t receives whole revenue on ad watch by viewers. YouTube holds 45 per cent of the total revenue earned and 30 per cent is cut off as taxes. Therefore, content up-loaders get 5-10 per cent of the revenue.
Even though the platform cuts off much from the side of content up-loader, the final revenue is still fair enough. That’s why the craze for creating and running YouTube channel is there and the number of channels are increasing day by day. But one thing is for sure, YouTube definitely earns a lot!