Category Archives: YouTube ~ Aodh Maguire

The Money-Makers of YouTube, what they make and where they work

Like any company YouTube hire’s a large range of people, not simply just computer programmers but engineers, marketing consultants, legal representatives and even the less glorified positions such as security and janitors are all employed by the site under the wing of Google. The Wall Street Journal even reported that  “a person familiar with the company said it has between 600 and 700 staff members” before their employment expansion planning to add more than 30%. This expansion is clear to see with the site becoming ever more prevalent so does the number of its people on it’s payroll increase [1].

Although this seems quite large you’d almost forget the actual amount of people YouTube pay for services is in the thousands. As I’ve mentioned on my previous blogs, YouTube pays commission to some of the more popular YouTube up loaders basing this on views and subscription. Many of the top names on the site make a living form their audience and have become internet celebrities and now part of the celebrity fame, often coming from nothing. According to celbritynetworth.com “YouTube is paid between $20 and $25 for every thousand ad views” and if you manage to become a YouTube “partner could earn $7”, who is someone who gains enough popularity on the website to gain a commission from YouTube. This is a staggering amount if you manage to make it. The site also shows a list of the top 25 earners on the site, with pewdiepie, a videogame player, making an estimated annual earning of $7 billion, and you can see why with a video posted 9 months ago earning over 43 million views on the site equating to over $614,000. This doesn’t even take into account the money that these “stars” can earn outside of YouTube, form their own sites, to advertising, merchandise sales, appearance on TV and convention along with many other things. Even number 40 on the list, a person I’ve never heard of called TimothyDeLaGhetto earns $1 million according to celbritynetworth.com showing the potential a YouTube can have.

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Figure.1 The top 18 earners on YouTube from the top 40 list [3].

Mentioning before the tidy sum the creators of YouTube pocketed a cool $1.65 billion [4] from google, and that YouTube “The word’s biggest video site will generate over $1.1 billion in revenue [5] by 2011”, and has only expanded since then. But what do the Bosses and excutives at YouTube earn? What of the average employee on the books at the websites payroll? Well unfortunately these figures aren’t released to the public so it’s anyone’s guess but Susan Wojcicki [6] Google’s ex-senior vice-president and recently new YouTube boss [7] is down as Forbes 30th most influential woman in the world, so you can’t imagine she’s short of change. Trying to find information on wages for the smaller employees and bosses hasn’t proved fruitful with Google/YouTube not making it easy to find this info.

One thing I can say is that working at YouTube looks like a dream! Their headquarters at San Bruno California [8]. With a 3 person slides, a pool, mini-golf, game stations and endless other things like whiteboards for any ideas that might come into someone’s head and an outdoorsy feeling to almost make you forget your in work. If only I had these perks with my job going home would be the worst thing about my day. I for one am waiting on YouTube reply to let me be one of their many workers, but I can imagine that is added to a long list with plenty more qualified than me [9].

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Fig.2. YouTube’s headquarters’ indoor features of 3 person slide and mini-put. [10]

-Aodh Maguire

References

  1. YouTube to Boost Staff by 30% this Year, WallStreetJournal.com, accessed 12/3/2014, http://online.wsj.com/news/articles/SB10001424052748704399804576193044126399836
  2. The 25 Highest Earning YouTube Stars, by Brian Warner, celebritynetworth.com, accessed 12/3/2014, http://www.celebritynetworth.com/articles/celebrity/the-25-highest-earning-youtube-stars/
  3. Screenshot from The 25 Highest Earning YouTube Stars, celebritynetworth.com, accessed 12/3/2014, http://www.celebritynetworth.com/articles/celebrity/the-25-highest-earning-youtube-stars/
  4. Google buys YouTube for $1.65 billion, NBC news, accessed 13/3/2014, http://www.nbcnews.com/id/15196982/ns/business-us_business/t/google-buys-youtube-billion/#.Uv0aRUJ_uAY
  5. Another YouTube Revenue Guess: $1 Billion in 2011, Wall Street Journal online, accessed 13/3/2014 http://allthingsd.com/20100305/another-youtube-revenue-guess-1-billion-in-2011/
  6. Power Women #30Susan Wojcicki, Forbes.com, accessed 13/3/2014, http://www.forbes.com/profile/susan-wojcicki/
  7. YouTube Gets New Boss,  businessspectator.com.au, accesses 13/3/2014, http://www.businessspectator.com.au/news/2014/2/6/technology/youtube-gets-new-boss
  8. Google San Bruno YouTube, Google.ie, accessed 13/3/2014, http://www.google.ie/about/careers/locations/san-bruno/
  9. Office Tour: Inside YouTube’s Dynamic California Office, HuffingtonPost.com, accessed 13/3/2014, http://www.huffingtonpost.com/2012/11/09/office-tour-youtube_n_2104166.html#slide=1743035
  10. YouTube’s headquarters’ indoor features of 3 person slide and mini-put, accessed 13/3/2014, http://www.huffingtonpost.com/2012/11/09/office-tour-youtube_n_2104166.html#slide=1743035
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What YouTube means to its users

 

YouTube’s motives since being acquired by Google have always been that of revenue form advertisements since its takeover. Originally the site was much less consumer based then what it is now but that’s not saying there haven’t been benefits with the site switching hands form your everyday computer geek to the international giant. The profit Google makes allows from investment and employment for YouTube with content creators getting their share of the advertisement revenue from their videos depending on how successful they become. The question always is though, do the big organizations really care for its customers? Well for the more prevalent users on the site you would have to say yes, but for the small guy that’s a little fuzzier.

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Image 1: Some popular Youtubers, many who make a living form the site. [1]

Sure now the site has income to monitor uploads and users but could this be restricting original content or help protecting from copyright and privacy? Any small infringement can get a video banned but sometime this use of say a song or an image but that’s how law dictates things should happen so it’s hard to complain.

Mostly the users need to look out for themselves by not shooting themselves in the foot and revealing personal information they wouldn’t want getting out like a house address and maybe even their actual names.

When taking its first steps YouTube wasn’t used by as many people as it is now so maintaining control, equality and protection was easier. YouTube now has to make sure that its subscriber’s users agree to a privacy policy. For users who think that a video invades their privacy or other users simply looking out for one another, they can report the video bringing it to the sites staff’s attention which can be done anonymously as well. Then after a review the video either is found guilty or not guilty, if any wrong doing a notice is sent to edit or remove the video in 48 hours. This seems pretty fair to me but sometimes the damage can be done in 2 days to wreck a person’s reputation.

All in all YouTube may prioritize it users who bring in the big bucks but they try and keep it even and recognize the importance of all its users. This is probably why the site is so widely used among the Internets population. People recognize the efforts YouTube has made to be user friendly and respect the privacy and ambitions its subscribers have, rewarding those who achieve and allowing an even platform for other to become successful, although like everything this can be mainly down to luck.

The sites perception by most is pretty similar, “the ads annoy me, the comments are stupid, the app wont play music when I close it” and countless other possible thing. This is common to most websites though something always bothers people and not everyone can be pleased. Improvements on the mobile app seems and easy enough fix but in due time improvements will always be made, to criticism again.

For many others and myself I enjoy the ease of use and variable content the site has to offer. It would be hard to find people who complain about how they can always watch new music videos or subscribe to their favorite users to get new videos at a moments notice and catch a highlight from a match or watch a speech from something on TV yesterday. I think the subscribers, general users and myself all appreciate having YouTube for what is brings to the Internet.

– Aodh Maguire

References:

  1. 14 KINDS OF PEOPLE ON YOUTUBE: LURKERS, FANS, INFLUENCERS & PROS, Zerf.com, accessed 5/3/1014, http://blog.zefr.com/2013/4-kinds-of-youtubers-lurkers-fans-influencers-pros/.

YouTube’s Humble Beginnings to an Important Global Business

YouTube’s draw to public attention in all its forms has made the developers, owners, advertising companies and many users quite a hefty sum of money. The 3 original creators I mentioned in my last blog made $1.65 billion form Google in their sale of YouTube [1], and Google are still reaping the benefits from their acquisition through the huge amounts of money they’ve made from advertising. It would be expected that the 3rd most popular site on the web would allow the executives of Google to sit fairly comfortably on top of the healthy cash cow.

Experts have even analysed the possible return YouTube has, Peter Kafka from the Wall Street Journal said “Since Google releases almost no information about YouTube’s financial performance, the best we can do is make educated guesses. Here’s another one: The word’s biggest video site will generate over $1.1 billion in revenue by 2011, and Google will keep about $700 million of that.” Although this is a statement made over 3 years ago, much of it still rings true to its current performance. Further down in the article goes on to claim “this estimate comes from Citigroup’s (C) Mark Mahaney, who notes that the site continues to grow and that it is placing more ads on more videos” [2], indeed the site has grown and expanded being used more in other websites to share videos and more subscribers.

Is amazing to think that how many users there are on the website. I myself have account on the website and many others I know as well, and while I personally don’t upload videos the account make me an active user commenting, liking and saving videos. According to YouTube’s own website 1 billion people are using it each month and “according to Nielsen, YouTube reaches more US adults ages 18-34 than any cable network”, “Millions of subscriptions happen each day. The number of people subscribing daily is up more than 3x since last year, and the number of daily subscriptions is up more than 4x since last year”[3]. And considering that the other top 2 social media website on the Internet are abundant with YouTube links its easy to see where these figures come form and the appeal to companies wanting to advertise their product to a large and diverse audience. The graph below even shows the increase in users over the past 2 years.

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Graph 1.  Fortune 500 corporate social media usage, from a study by university of Massachusetts [4].

The advertisements generally on the website consist of many different things, such as joining universities, new movie release and tv shows, public messages, road safety ads, anything. The advertisements on the side not overshadowing the videos are fine but almost every single video shoving more junk at me that I don’t care about before every video can get annoying. Letting the ad run and waiting for the “skip in 5… 4… 3…” seems like an eternity. The red bull ads being the worst and always unskippable just frustrates me, but I guess that’s advertisement’s achieving their ultimate goal, for me to watch their ads even if I don’t want to but have no other choice.

With YouTube on almost every new phone it can be accessed anywhere, and if not to download it is free, although the ads still play before most videos unfortunately. Having the ability to play videos on the go, update my account and upload a video (most mobiles can even upload directly without the need of a computer) shows how integral the site has become in a modern world. According to YouTube “Mobile makes up almost 40% of YouTube’s global watch time” [5], this is probably due to a mix of young people using YouTube, how advanced mobile phone have now become and that many of the videos on YouTube are uploaded from mobile phones.

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Image 1. A common view of the YouTube app on a mobile device. [7]

Having seen YouTube progression form humble project with an office run from above a pizzeria [8], to the now global network for sharing, creating and popularizing videos across the Internet with a massive headquarters  [9] in California its development and expansion are amazing. Its importance as an medium for advertising, sharing videos and information, employer and business is one of the many but most incredible rise of websites on this age.

-Aodh Maguire.

References:

  1. Google buys YouTube for $1.65 billion, NBCnews.com, accessed 13/2/2014, http://www.nbcnews.com/id/15196982/ns/business-us_business/t/google-buys-youtube-billion/#.Uv0aRUJ_uAY
  2. Another YouTube Revenue Guess: $1 Billion in 2011, Wall Street Journal online, accessed 17/2/2014 http://allthingsd.com/20100305/another-youtube-revenue-guess-1-billion-in-2011/
  3. Statistics, YouTube press page, accessed 17/2/2014, http://www.youtube.com/yt/press/statistics.html
  4. Why social media platform is the right one? , Aquarius.biz, accessed 13/2/2014, http://www.aquarius.biz/en/2013/07/18/which-social-media-platform-is-the-right-one/
  5. Statistics, YouTube press page, accessed 19/2/2014, http://www.youtube.com/yt/press/statistics.html
  6. YouTube: iPhone Already Accounts for Half of Mobile Uploads, http://gigaom.com/. accessed 20/2/2014, http://gigaom.com/2009/06/25/youtube-iphone-already-accounts-for-half-of-mobile-uploads/
  7. A Brief History of YouTube, google.com, accessed 20/2/2014, https://sites.google.com/a/pressatgoogle.com/youtube5year/home/short-story-of-youtube
  8. A Brief History of YouTube, google.com, accessed 20/2/2014, https://sites.google.com/a/pressatgoogle.com/youtube5year/home/short-story-of-youtube
  9. Google San Bruno (YouTube), google.ie, accessed 21/2/2014, http://www.google.ie/about/jobs/locations/san-bruno/

YouTube: one of modern online cultures biggest contributors, shaping what’s popular and what’s not.

Its funny to think that YouTube was invented 9 years ago by 3 former PayPal employees and depending on whom you believe, were trying to find a video of Janet Jacksons 2005 superbowl halftime show incident, the Asian tsunami disaster or more boringly sharing pictures at a dinner party [1]. Since then it has become one of the most used and visited websites on the net currently 3rd [2] in the world. The sale of YouTube to the most popular website in the world google.com for $1.65 billion, shows even back in the early days of “high speed” Internet in 2006, the potential for the website to become a new form of social media [3].

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[4] the front page of YouTube.

Anyone registered on the site can upload a video, be it of themselves, something they have recorded or simply another clip found somewhere on the web. The site has made heroes and villains, given now celebrities (such as Justin Bieber) their first audience and allowed a common person express themselves to the few. These days all it takes is a simple camera phone, and the ease to share videos with the world has made it possible to watch almost anything form anywhere in the world, no matter how weird it might be sometimes. It can be considered one of the leading social medias of today, if you stop to think its not hard to understand why this is, almost all other social media website and even television relying on “sharing” YouTube’s videos and many other website linking clips of last nights goal or new viral video to its own users.

The ability to customise your own profile, subscribe to friends and other accounts for the latest updates, send messages, like/dislike, comment and of course upload your own videos and crate playlist of your favorite videos it is more similar to the likes of Facebook and Twitter than most people would think. Even though some of the comments can be moronic and at worst racist people can express themselves on the website, sometime even to the entertainment of other users.

Myself I can’t imagine where I’d be without YouTube, I’ve almost grown up with it, seems like YouTube has been here since the creation of the Internet. Even while writing this I’m listening to music and it’s almost impossible to scroll through my Twitter and Facebook account with out being bombarded by videos form the site. The ability to make playlists of your favorite videos make it extremely handy for listening to music and most parties will have speakers hooked up to YouTube music videos it almost impossible to think what it would be like without this leader in the modern internet age.

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[5] A common view on Facebook, with plenty of links to YouTube videos.

I think its fair to say from its humble and simple beginnings YouTube has become one of the most influential websites on the Internet. Regardless if you like it or not its here to stay, embarrassing people, shooting them to fame, managing our own interests, seeing mindless argument in comments and proving what’s popular and not it is almost a completely necessary tool in todays society.

-Aodh Maguire

Referencing

  1. 81 Revealing Facts About . . .YouTube, random history, accessed 13/2/2014, http://facts.randomhistory.com/youtube-facts.html.
  2. Alexa youtube popularity data, Alexa, accessed 13/2/2014 http://www.alexa.com/siteinfo/youtube.com.
  3. Google buys YouTube for $1.65 billion, NBC news, accessed 13/2/2014, http://www.nbcnews.com/id/15196982/ns/business-us_business/t/google-buys-youtube-billion/#.Uv0aRUJ_uAY
  4. Image of the front page of youtube, Snowden leaks: GCHQ ‘spied on Facebook and YouTube’, bbc.co.uk accessed 15/2/2014 http://www.bbc.co.uk/news/technology-25927844
  5. Screenshot from my own Facebook page.