How Does the YouTube Industry Work

Marcus Butler told his parents eight years ago that he planned to work in the YouTube industry as a content creator, his income was only a few dozen pounds.

Now, the 18-year-old has bought a property in his hometown of Brighton, creating a healthy snack ordering company and music management company. He began to earn revenue from YouTube ads next to his films. Like other successful YouTubers, he also promoted his own brands, products and services, with sources of income including travel, books and merchandise. He has become a model for a new generation of YouTubers.

Nowadays, the YouTube platform is very competitive. It takes 8 years to upload the content of the day. It contains movies made by stars , music and entertainment fields. YouTube competes with content sites like Facebook on the one hand and streaming music media like Spotify on the other. On the other hand, the young YouTuber has to learn to run complex business before the start of the career of peers.

However, the opportunities that YouTuber brings are huge, and anyone with a smart phone can try to attract the 1.9 billion registered users on the platform. The size of the economy is hard to estimate. Google’s parent company, Alphabet, did not disclose YouTube’s revenue, but according to the company’s claim, channels with annual revenues of more than $100,000 were up 40% from the same period last year. BTIG analyst Rich Greenfield estimates that YouTube’s revenue could be as high as billions of dollars. Google bought YouTube for $1.7 billion in 2006 to make sure it doesn’t become a competitor.

The first quarter earnings report pointed out that 84% of YouTube’s 1.7 billion page views were made by Influencer. Less than 60% of Facebook’s audio and video content is made by opinion leaders, and relatively more dependent on media organizations and big brands.

Kelly Merryman, YouTube’s vice president of content collaboration, says growth and scale provide creators with a real opportunity to reach a global audience and build a real business.

Vloggers has been an important part of the YouTube model in the early days. In May 2007, after more than two years of launching the YouTube platform, it introduced this business model: creators gained 55% of their video advertising revenue, which later extended to 97 countries.

Now, advertising is not the only choice for YouTuber, or even the main income. As large creators began to leverage their money by working with brands, YouTube acquired FameBit in 2016, a company that combines creators and marketing people. At this year’s online video event VidCon, YouTube announced that video creators can now sell memberships on their channels, allowing fans to enjoy content and create their own products through the platform.

How to draw attention on YouTube is the hardest part. Mathias Bärtl, a professor at the University of Applied Sciences in Offenburg, Germany, found that the first 3% of YouTube’s channels received 90% of the site’s views shortly after YouTube’s launch, compared to about two-thirds in 2006.

As a YouTuber, there are also many difficulties, and you may not be able to make enough money if you are not attractive enough. In addition, the more successful YouTuber, the staff salary, and the acid people.

The creator Dyer has 48,000 users, and he says that many creators often deliberately do some provocative things to get clicks, but insist that it is not a slave to the algorithm. “I never made enough money from YouTube to pay the bills,” he said. Mr. Dyer is now using the online subscription service Patreon to receive fan contributions.

Creators with a large following tend to have more employees, from filmmakers to lawyers, accountants, and sometimes stylists, such as Los Angeles-based creator Cassey Ho, who employs 12 people and has a production Studios and a warehouse, all of which also cost.

The most popular YouTubers can now enjoy money and prestige like traditional celebrities, but there is such a high-profile pressure.

Ruben “Elrubius” Gundersen is a Spanish YouTuber known for shooting video games. He told his 30 million users in May that he would take a break because of anxiety. “I have to go to the doctor because I feel unable to breathe in recent days, and I slept even worse,” he said.

Stress has become a problem, and YouTube has uploaded a video about burnout to its online creative college, which is next to the course on copyright and brand transaction fees.

User comments may be uncomfortable. The creator, Unjaded Jade, said she had to deal with the Twitter fake account of racist speech, and when people insulted her, she would have “low morale.”

Just over a year ago, Mr. Butler began to get bored with YouTube. “I lost my passion for what I did,” he said. But when he invited comedian Jack Whitehall to his podcast in October, he realized that using YouTube to test the market’s potential was still very effective. “It is not appropriate to give up completely,” he said.

Hülya Karahan: The Founder