Revenue Analysis: YouTube

Revenue Analysis: YouTube 1
REVENUE ANALYSIS OF A YOUTUBE CHANNEL: TO CATCH A CHEATER
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Revenue Analysis: YouTube 2
Revenue Analysis of a YouTube Channel: To Catch a Cheater
Background
The development and globalization of the internet has created numerous opportunities for
innovative individuals on social media. Over the past decade individuals with creative content
and idea have been able to raise income on YouTube as a result of subscribers and advertisers.
Revenue changes over the years have introduced numerous ways and vectors through which
YouTubers can earn money on YouTube (Wang 2015). There are several factors that influence
how much a person can earn on YouTube. The first factor is content appeal: some YouTube
channels are visited by more people than others because of the nature of the videos they post.
Introduction
In reality, lifestyle, humors, and music channels realize more views compared to serious
content channels. As a result, there is a different in revenue for these different channels
stemming from consumer demand. The second factor is income vectors: most monetized
YouTube channels solely rely on the income they receive from Google (Laurence & Moingeon
2010). However, there are those YouTubers who have linked up with third-party organizations
like Patreon and PayPal as a way to diversify their revenue streams. The last factor is a
combination of channel subscribers and views: YouTube channels with more viewers and
recurring visitors tend to realize more income compared to those with limited traffic. As free
video sharing platform YouTube does not demand that consumers pay to view content; in place
of this Google developed a revenue model that was linked to advertisements (Mars 2012).
Therefore, Google is able to make profits and meet expenses on YouTube by posting
advertisements in various videos.

Revenue Analysis: YouTube 3
The Development of Revenue Models
Recently, Google reevaluated their payment metric for YouTubers; which resulted in
reduction of payment for YouTubers. As a result, YouTubers have turned to donations and third-
party advertisement deals to make additional revenue (Boerrigter 2008). The introduction of
policies in YouTube that allow users to receive and accept payment from subscribers and
sponsors has drastically reshaped the way people make money via video sharing platforms. A
revenue model defines the manual through which a business makes money. In this case we will
evaluate how a particular YouTube channel makes money. Consumers normal pay to get a
solution to a given problem. In most cases people will pay youtubers for awareness and
advertisement purposes; by so doing they hope to solve a marketing problem. The first step in
the development of a feasible revenue model is the determination of sources and nature of
revenue that will be payable to the business. In this scenario, we will evaluate the likely sources
of funding and expenses for a YouTube channel. There are several types of revenue to select
from advertising sales, license fees, commissions, data access fees, service fees, donations, and
products sales. Regardless of the type of revenue the source of these funds can vary greatly. For
instance, service related sales revenue can significantly vary depending on customer type and
economic class of consumer. Moreover, it is common practice for large corporations to separate
their income avenue; as such, a single revenue source can be diversified into several
subcategories for the purposes of transparency, accountability, and departmental segregation
(Audenhove & Little 2013).
To Catch a Cheater