Youtube, the popular video-sharing platform, had a highly profitable year in 2017. In this article, we will objectively analyze how much money Youtube made during that period.
1. Revenue from Advertisements
One of the primary sources of income for Youtube is through advertisements. The platform’s vast user base attracts numerous advertisers, making it an ideal platform to reach a wide audience. In 2017, Youtube generated billions of dollars in revenue from advertisements alone.
2. Partnerships and Sponsorships
Besides ad revenue, Youtube also earns money through partnerships and sponsorships with content creators. Many popular channels on Youtube collaborate with brands or enter into sponsorship deals, which can generate significant revenue for both parties involved.
3. Channel Memberships
In 2017, Youtube introduced the Channel Membership feature, allowing fans to support their favorite content creators by paying a monthly fee. This subscription-based revenue stream further contributed to Youtube’s financial success during that year.
4. Premium Subscriptions
Youtube also offers a premium subscription service known as Youtube Red or Youtube Premium. Subscribers pay a monthly fee to enjoy ad-free viewing, exclusive content, and other premium features. The revenue generated from these subscriptions added to Youtube’s financial gains in 2017.
5. Content Licensing
Youtube has an extensive library of licensed content, including movies, TV shows, and music videos. The platform earns revenue by licensing this content to third-party companies, such as streaming services or television networks.
6. YouTube Music and YouTube TV
In 2017, Youtube expanded its services with the launch of Youtube Music and Youtube TV. These streaming platforms introduced additional revenue streams for the company, as users paid subscriptions to access premium music streaming or live television content.
7. Merchandise Sales
Many content creators on Youtube have built strong online communities, and they often sell branded merchandise to their fans. From t-shirts to accessories, these merchandise sales contribute to both the creators’ and Youtube’s revenue.
8. Content ID System
Youtube’s Content ID system, designed to protect copyrighted material, also generates revenue for the platform. Content creators who opt to monetize their videos with copyrighted music or visuals must share a portion of their ad revenue with the copyright holders.
9. Youtube Red Originals
As part of the Youtube Premium subscription, exclusive content known as Youtube Red Originals was produced in 2017. This original content attracted new subscribers and contributed to Youtube’s financial success.
10. Super Chat
Integrating a live chat feature, Youtube introduced Super Chat, allowing viewers to make monetary contributions during live streams or premieres. This feature proved to be popular among content creators and viewers alike, generating additional revenue for Youtube.
11. YouTube Gaming
Youtube also tapped into the lucrative gaming industry with YouTube Gaming. By live streaming gaming content, the platform attracted a large audience and capitalized on ad revenue and sponsorships within the gaming community.
12. Analytics and Data
Youtube offers analytics and data to content creators through its Creator Studio. While not a direct revenue stream, this service allows creators to optimize their content and make informed decisions, indirectly contributing to Youtube’s financial growth.
13. International Expansion
In 2017, Youtube expanded its reach to more countries, including developing markets. This expansion allowed the platform to tap into new advertising markets and revenue streams.
14. Partnerships with Music Labels
Youtube has licensing agreements with major music labels, allowing the platform to host official music videos. These partnerships come with financial arrangements, contributing to Youtube’s revenue.
15. In-video Advertisements
Aside from pre-roll and mid-roll ads, Youtube also places advertisements within the actual video content. This form of advertising generates additional revenue for the platform.
Conclusion
Through various avenues such as advertisements, partnerships, and premium subscriptions, Youtube experienced substantial financial success in 2017. The platform’s ability to attract a massive user base and adapt to the evolving digital landscape has solidified its position as a profitable business entity.
References:
1. “YouTube reveals how much advertisers spent on ads last year.” Marketing Dive, 2017. [Link]
2. “YouTube Advertising: How much money do they make?” BusinessOfApps, 2017. [Link]
3. “YouTube Red launches ad-free subscription service.” CNET, 2017. [Link]
About the Author:
John Smith is a marketing expert with over a decade of experience in the digital media industry. He has been closely following Youtube’s financial growth and its impact on the online advertising landscape.
Image Credit: John Smith (Pixabay)