Learn How To Make More Money With Business Model of YouTube

YouTube is basically a website on which people can watch and upload videos.  But that is an understanding.  You Tuber offers only this much to its users.  YouTube has many features in streaming its videos.  The website has a search bar through which you can access relevant videos among the billions available.  This makes it so easy for users to find exactly what they are looking for.  You can optimize your search using keywords.   Users can enter captions for their videos which allow them to become more relevant to searches.  Apart from this, users can also live stream.    YouTube also has a community feature that allows a channel to host a community tab.  On it, it can post videos, pictures and GIF for viewers.  

YouTube logo

YouTube Red

It is a premium feature that YouTube have.  It is like a subscription service that gives the user access to many otherwise accessible features.  These include streaming video without advertising, content that is not normally accessible, and playback feature on offline and background mobile devices.  You also have access to all services of Google play music

YouTube TV

In 2017, on 28 February, YouTube announced the launch of another service called YouTube TV.  It is a live TV service with over 40 channels.  However, this service is only available in selected US cities.  It comes with a fee of $ 35 per month.  It provides unlimited cloud DVR storage.  It can record your favorite shows simultaneously.  It is available on your phone, TV and computer.

How Does YouTube Earn Revenue ?

YouTube, as we saw in the first paragraph, is a video sharing website.  Its products are its users.  This is right.  What YouTube is essentially selling is its users for various advertisers.  They also have other sources of revenue.

YouTube revenue model

Most videos on YouTube are completely free for users to watch, and it is for this reason that they get such a large number of visitors every day: over thirty million.  The simple fact is that they get many people visiting their website on a daily basis, a large crowd of advertisers attracts them.

  • ¬†One method is through sponsored videos. ¬†The advertiser pays YouTube according to the views received after the advertisement is selected. ¬†The sponsored video is first displayed at the top of all videos and its address is based on the specific keywords that will be searched. ¬†
  • The second method through which it makes money through advertising is by embedded video. ¬†The advertisement that is run at the beginning of the video is embedded video. ¬†Here too, you get your salary based on watching YouTube.
  • The third method is advertisements displayed on the homepage of the website. ¬†On opening the homepage of the website, there are some blocks of advertisements which are shown along the sides.
  • These are also advertising schemes that YouTube offers to its customers. ¬†Here, advertising earns revenue through a mix of clicks and views

YouTube Premium Service

YouTube also earns through its premium services, such as YouTube Red and YouTube TV.  The reason for this is the constant battle between ad pushers and ad blockers, and hence they have to depend on such services by charging a monthly fee.  YouTube has also started a program that will pay channels on YouTube and charge subscribers monthly to gain access

YouTube Customer Segment:

  • People who use YouTube and derive value from it.
  • People who use the Internet extensively.
  • People who like to watch videos and actively subscribe to them.
  • Advertisers who want to connect with people using the Internet.
  • Developers who want to get their products and design there for people to see.

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YouTube Value Proposition:

What is it that YouTube offers to its users ?

  • Gives its users access to more than one billion videos.
  • Works as a platform for creators of original content so that their goods can get out of there and be seen by billions of people.
  • Even this makes their content inspiring to the audience and is very well known.
  • It is free and at no charge except for all premium features.
  • It has a separate section for gaming and has the facility to watch the games live.
  • Now also offers live streaming of videos.
  • One of the best websites for advertisers who advertise.

YouTube Channel:

What YouTube uses to reach its customers ?

  • Basic home website that can be accessed via the Internet.
  • Through embedded videos on other websites.
  • Television because of YouTube TV.
  • Mobile phones can also be used to visit websites.
  • Its own app on various markets.
  • By hosting a live event.
SWOT Analysis Of YouTube

YouTube  Maintain A Relationship With Its Customers By Following Ways:

  • The website itself is made up of users' content.
  • This gives the platform a very personal feel for it.
  • The website is very user friendly.
  • YouTube's branches are spread everywhere across the Internet.
  • It gives the website and its users a kind of community experience.
  • Users can rate and like or dislike videos. ¬†This allows them to feel like a part of the community.
  • Users can create playlists and also add videos to subsequent lists and favorites.
  • The website can be accessed from anywhere and anytime with only basic Internet and video requirements.
  • The fan bases that are made are very large and pay great attention to the channel or the so-called 'You Tuber'.

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Revenue Stream:

YouTube Makes Money By Following Ways:

  • A large part of the revenue stream is through advertisements.
  • Premium services like YouTube Red, YouTube TV and paid channels also contribute to the company's revenue.
  • You can rent or buy a movie on YouTube

Main Activities Performed By YouTube.

  • YouTube thrives on gaining more users on its list. ¬†It thrives on marketing.
  • Develop website to make it more user friendly and attractive.
  • To generate more traffic to the website.
  • Manage that traffic efficiently.
  • Filtering content being uploaded continuously.
  • As well as finding and regularly updating the changing trends.

YouTube Key Resource:

  • The website needs to continuously upload new original content.
  • This requires the advertising capability offered by Google.
  • Video player facilities for viewing content.
  • Continuous innovation and platform development.
  • Video quality and format in which they are uploaded.
  • 3D videos and 360 videos are to be uploaded.
  • A huge network of users uploading and watching videos and liking and commenting

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YouTube Cost Structures:

  • Running the platform.
  • Music Key Licensing.
  • Video hosting costs.
  • Marketing plans.
  • Property rights.
  • Legal costs.
  • Employees.
  • Taxes

Future of YouTube

Considering all the sources of revenue and costs that the company incites to hosting videos, YouTube is still struggling to make significant profits.  Users are making money from third parties by promoting products.  YouTube needs to start dubbing in this area to meet the shortcomings in its profits.  The CEO of YouTube still says that YouTube is at an investment level in its growth.  YouTube is trying to figure out a complete model that will allow them to reap the beneficial benefits.  But YouTube is the second most visited site in the world.  This gives them an edge to begin with.  They can capitalize on this fact on a large scale and become one of the most profitable businesses.  Like the basic axis from a dating website to the common one, YouTube needs a more simple axis to make money making machines.  That is YouTube for you.