The Success Of YouTube And YouTube Stars
YouTube is trailing behind Facebook to become the world’s second largest social media platform. As of 2018, it had over 1.8 billion logged in users every month, 0.2 billion less than that of Facebook. With guidance from your economics tutor in economics tuition, discuss the business model of YouTube and its success factors.
YouTube was created in 2005 in the United States by three of its co-founders, Chad Herley, Steve Chen ad Jawed Karim. The very first YouTube video, entitled “Me at the zoo” was subsequently created and uploaded by Jawed Karim on 23 April 2005 from the San Diego Zoo. Just a year later in 2006, YouTube was acquired by Google for US$1.65 billion. Nowadays, YouTube contributes an annual revenue of US$13 billion with its net advertising revenue standing at US$4.95 billion. It is poised to become Google’s next driver of growth. You may consult your economics tutor in your economics tuition class the ROI (return on investment) of Google’s acquisition of YouTube. You may sign up for economics tuition with a reputable economics tutor should you need help with the subject.
YouTube Stars
It is estimated that YouTube attracts one third of the internet users with 1 billion hours of YouTube content watched by users from across the globe every day. Most of the users are attracted to the platform by YouTube stars such as Dan TDM and Justin Bieber, just to name a few. Apart from their fame, they are also able to rake in decent income from advertisements and sponsorships. With assistance from your economics tutor in your economics tuition class, compare the advantages and disadvantages of YouTube with traditional media platforms such as TV, radio and newspaper. You are encouraged to analyse the cost effectiveness of YouTube as an advertising platform, together with your economics tutor in economics tuition.
In 2017, the 10 highest paid YouTube stars earned a combined income of US$127 million. The number of channels earning over US$1 million grows by 40 per cent year on year. The most popular YouTube channel is T-Series which has 119 million subscribers, followed by PewDiePie of 102 million subscribers. Digital media platforms such as YouTube and Facebook have long overtaken traditional media platforms. Please consult your economics tutor in your economics tuition class to explain why.
Highest Paid YouTubers
YouTubers with 500 to 5,000 subscribers can make an average of US$315 from each of the video they upload while those with more than 500,000 subscribers can expect an average of US$3,857 from each video. Due to its cost effectiveness, businesses including economics tuition centres have been focussing more on digital advertising to reach out to their target group of customers. Economics Cafe Learning Centre, the best economics tuition centre founded by its principal economics tutor Mr Edmund Quek, is one of them.
According to Forbes, the highest paid YouTube star in 2018 is a 7-year-old boy named Ryan. His channel Ryan’s World has earned his family a total of US$22 million in 2018. Other YouTube stars on the Forbes highest paid YouTubers’ list include 23-year-old Logan Paul (US$14.5 million), 27-year-old Felix Kjellbrg (PewDiePie, US$15.5 million), 28-year-old Sean McLoughlin (Jacksepticeye, US$16 million), 26-year-old Evan Fong (VanossGaming, US$17 million), 29-year-old Mark Edward Fischbach (Markiplier, US$17.5 million), 33-year-old Jeffree Star (US$18 million), 27-year-old Daniel Middelton (Dan TDM, US$18.5 million), the five-man sports crew Dude Perfect (US$20 million), and 21-year-old Jake Paul (US$21.5 million). Some YouTube stars have leveraged on their popularity on YouTube to generate additional income elsewhere. For example, Jeffree Star has her own line of cosmetics for sale online and Ryan has his own line of collectibles for sale at Walmart.
Linda Geng
Economics Tuition Singapore @ Economics Cafe
Principal Economics Tutor: Mr. Edmund Quek