A billion Dollar Industry?

By Scott Johns

Origins & History

• Founded in early 2005 by 3 former PayPal Employees.• Purchased by Google in November 2006 for $1.65 billion.• 65,000 uploads and 100 million views per day after 1 year.• In ‘07 consumed as much bandwidth as entire internet in ’00.• 1st worldwide free broadcast of a major sporting event in ‘10.• Showing more than 2 billion videos a day in May 2010.

[Wikipedia]

“Nearly double the prime time audience of all three major US television networks combined.”

[YouTube]

Controversy• Multiple lawsuits have been filed against

YouTube for failing to make sure videos do not violate copyright laws but no damages have been awarded as of yet.

• YouTube was however ordered to hand over data detailing the viewing habits of its users.

• Many countries have used web filtering to block their citizens from accessing YouTube due to concerns over lack of censorship.

[Wikipedia]

“Some schools have blocked access to YouTube, citing the inability to determine what sort of

video material might be accessed by students.”

[Wikipedia]

Revenue in 2010

• Various analysts estimated YouTube’s 2010 revenue to be as low as $450 million and as high as $945 million.

• Google doesn’t release YouTube’s actual revenue numbers, but did state that in 2010 it, “more than doubled.”

[NY Times, Mashable, YouTube]

It is still unclear whether or not YouTube has become profitable.

Individuals Profiting From YouTube

• YouTube began inviting some users to share in advertising revenue in 2007.

• There are now over 10,000 YouTube channels in the partner program.

• After being discovered on YouTube, Justin Bieber signed a record deal with Usher. His video “Baby” is currently the most viewed YouTube video of all time with over 482 million views.

[Wikipedia]

“Some partners are doing $10K a month."

[Will Video For Food]

Works Cited• "YouTube." Wikipedia, the Free Encyclopedia. Web. 08 Mar. 2011. <http://en.wikipedia.org/wiki/YouTube>.• "YouTube | Facebook." Welcome to Facebook - Log In, Sign Up or Learn More. Web. 08 Mar. 2011.

<http://www.facebook.com/youtube?v=info>.• Miller, Claire C. "YouTube Ads Turn Videos Into Revenue." The New York Times. 2 Sept. 2010. Web. 7 Mar.

2011.• Ostrow, Adam. "YouTube Revenue Approaching $1 Billion Per Year [REPORT]." Social Media News and Web

Tips â Mashable â The Social Media Guide�� �� . Web. 08 Mar. 2011. <http://mashable.com/2010/03/05/youtube-revenue-2010/>.

• "YouTube - Q4 2010 Earnings Call." YouTube - Broadcast Yourself. Web. 08 Mar. 2011. <http://www.youtube.com/watch?v=J-jVzQm8kAs>.

• "Social Impact of YouTube." Wikipedia, the Free Encyclopedia. Web. 08 Mar. 2011. <http://en.wikipedia.org/wiki/Social_impact_of_YouTube>.

• Nalty, Kevin H. "How Much Money Does a YouTube Partner Make?" Will Video For Food. 2 Apr. 2008. Web. 16 Mar. 2011. <http://willvideoforfood.com/2008/04/02/how-much-money-does-a-youtube-partner-make/>.