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The Future of YouTube

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lura hoffer
The Future of YouTube

Since its first launch in 2005, YouTube quickly became one of the best destinations for video content online that attracts over one billion daily users. This Google-owned site started gaining popularity when they enabled users to share their videos with everyone across the globe. Google acquired YouTube for a whopping $1.65 billion which later ended with the long-running questions like how does YouTube work? Or what will be its business model? The users over here can share anything they want whether it is an amusing clip of their pet, or any delicious cooking recipe, or footage of them dancing, and much more.

This platform is available in 76 different languages and is being used by celebrities, big brands, and many others. There are YouTube influencers who will promote themselves to earn money. But the question over here is ‘how does YouTube work?

The popularity of Youtube is mainly due to the easiness of the website to be used. YouTube got views numbering in millions after they contacted major companies to put their content on the platform. YouTube, by now, is worth more than $75 billion.  While its growth is a giant history, let us have a look at ‘how does YouTube work?’ to deeply understand their business strategies.

YouTube Revenue Model

YouTube’s product is users, right? We can say that YouTube is essentially selling its users to various advertisers. But yes, they have other sources of revenue as well.

Most of the videos on YouTube are not charged and completely free for users and there is only one reason behind it. That is, they get such a giant number of visitors every day. The number ranges more than 30 million. And this attracts a large number of advertisers to YouTube. One method being followed over here is through sponsored videos. The advertiser will pay to the YouTube as per the views they get once the ad has been selected. In a secondary way, it’s all about the embedded video (advertisement) being played at the beginning of the original video. Here as well, YouTube gets paid. The third type over here is the advertisements being displayed on the homepage when we open YouTube.

With advertisements, the premium services play a major role in the YouTube revenue generation. It earns huge revenue from the premium services they offer just like YouTube Red and YouTube TV. It has even launched a program where the paid channels will be available and the subscribers will be charged the monthly fees for the access.

One can believe that YouTube must be making a lot of money, being the most viewed app. With the knowledge of ‘how does YouTube work?’ It is really important to understand the YouTube business model and YouTube revenue model.

These days more and more content creators are looking for platforms like YouTube. And that’s why it is must to have an insight on ‘how does YouTube work?’ If you are attracted to start with your own website like YouTube, we at NCrypted provides you with the best solution as per your requirements. Have a look at our YouTube clone script, which you can even customize as you require. Contact us for having an in-depth detail on it.

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