YouTube Research

1. YOUTUBE
RESEARCH
By Emma Bathe-Taylor

2. THE BEGINNING

3. WHO
STARTED IT?
WHEN?
YouTube is an American
video-sharing website
that was founded and is
now headquartered in
San Bruno, California.
The service was created
by three former PayPal
employees; these being
Chad Hurley, Steve Chen,
and Jawed Karim on the
14th February 2005.

4. WHEN
WAS IT
FIRST
AVAILAB
LE IN
THE UK?
 During the summer of 2006, YouTube became one of the fastest growing sites on the
World Wide Web; hosting more than 65,000 new video uploads. An average of 100 million
video views were delivered each day in July.
 According to the website Hitwise.com, YouTube commanded up to 64% of the UK online
video market in 2006.
 On June 19, 2007, Google CEO Eric Schmidt launched the new localisation system. The
interface of the website was available with localized versions in 89 countries, the UK
included.

5. WHAT DID IT DO? WHAT
WAS THE FIRST CONTENT?
 It was created as a video-
sharing website where users
could upload, share and view
content.
 Video upload options were
integrated on April 23, 2005.
 The first YouTube video,
titled Me at the zoo, was
uploaded on April 23, 2005,
and shows co-founder Jawed
Karim at the San Diego Zoo.

6. KEY CHANGES &
DEVELOPMENTS

7.  On October 9th 2006, it was announced that
Google would be purchasing the company for
$1.65 billion in stock; which was completed on
November 13th. At the time, YouTube was
Google's second largest acquisition.
 YouTube presented three arguments with
media companies in an attempt to avoid
copyright-infringement lawsuits. They
planned to continue operating independently
with their co-founders and 68 employees
working within Google.
 In 2010, Chad Hurley's profit was more than
$395 million whilst Steve Chen's profit was
more than $326 million after the sale to
Google.

8. WEBSITE DEVELOPMENTS
TIMELINE 2005-2016

9. YOUTUBE
TODAY

11.  The total number of people who use YouTube –
1,300,000,000.
 300 hours of video are uploaded to YouTube every
minute!
 Almost 5 billion videos are watched on YouTube
every single day.
 YouTube gets over 30 million visitors per day
https://fortunelords.com/youtube-statistics/

12. BUSINESS
MODEL

13.  YouTube allows its users to upload videos, share and comment on other
videos, subscribe to other users’ channels and make money by
monetizing their videos. The videos uploaded on the platform are free to
watch.
 YouTube also provide a specialized platform for games and music.
 The product that YouTube sells is its users. This is an advertisement
based business strategy.
 YouTube also makes money through a subscription based model as well
which is YouTube Red. YouTube red offers certain exclusive benefits to
the subscribers by charging just a nominal amount for membership.
 One of the ways YouTube make money is through sponsored
advertisements. The advertiser pays YouTube based on the number of
views the sponsored video gets. It's called SERP advertising.
https://www.feedough.com/youtube-business-model-how-does-youtube-
make-money/

14.  Another advertisement technique YouTube uses is the
embedded advertisement. The advertisement is played
before the actual video begins and/or short ads are placed in
between videos, that also generate income. The company
earns money from the advertisers based on the number of
views the ad gets and a proportion of that fee is paid to the
creator of the video.
 A landing page advertisement on YouTube is a banner style
advertisement on their home page which can contain both
pictures and videos and can be used by advertisers in
numerous ways. This type of advertisement YouTube
charges the most for.
https://www.feedough.com/youtube-business-model-how-does-
youtube-make-money/

15.  YouTube also launched its subscription-based 'freemium revenue
model', YouTube Red, which gives the user an enhanced and
uninterrupted experience across YouTube, YouTube Music,
and YouTube Gaming. The subscription cost is $10 per month.
 Some of the perks include:
Ad-free videos
Access to exclusive YouTube Red content
Offline videos and songs
Background play when using other apps or when your screen is
off
Audio mode on the YouTube Music app
Free Google Play Music Subscription

16. YouTube's parent
organisation is Google.
The current CEO is Susan
Wojcicki, who has been in
office since the 5th of
February 2014.
The headquarters are
located in San Bruno,
California.

17.  Analyst Justin Post wrote a note in May 2015 saying that YouTube is worth about
$70 billion on its own. That’s a higher value than all but 66 of the companies listed
on the S&P 500.
 He also thinks that YouTube could still grow, with a valuation of up to $90 billion
possible; which would leave only 55 S&P 500 companies beating it.
 The 2006 deal was for only $1.65 billion.
http://fortune.com/2015/05/27/youtube-google-value/

18. THE FUTURE

19. THE
FUTURE
OF
YOUTUB
E
 In an article from The Guardian in 2015, they make
predictions for the future of the video-streaming service;
considering what it would look like in 2025.
 YouTube still remains a video service, however they predict
that in the next decade it will expand into an all-
encompassing entertainment service, where the user can
partake in interactive experiences within a huge casual
gaming platform.
 Live sports will also be a key part of YouTube’s video
offering, allowing users to watch football, American
football, basketball, cricket etc.
 By 2025 YouTube will be much smarter at understanding
the user's tastes, drawing on everything that its parent
company knows about them as well as their YouTube
history.
https://www.theguardian.com/technology/2015/feb/16/youtub
e-in-2025-future-predictions