Since its initiation on Feb. 14, 2005, YouTube has taken the world by storm, providing a platform for content creators across the globe.
Over the years, the site has served as the blueprint for sharing videos across the Internet for its competitors. Today, the company works to continue to hold the title as the No. 1 place to watch videos, and of course, it’s no secret that the platform dishes out big bucks for its content creators.
The platform first began to pay for the content produced in 2007, just a few years shy of its initial launch. Now, Fortune reports that over the past three years, YouTube has dished out $30 billion to its creators.
“Our responsibility as a global platform has created this place that works,” said Neal Mohan, YouTube’s chief product officer, in an interview.
And, the company plans to remain true to its original concept with no intention of letting up any time soon.
Where Does The Money Come From?
Advertisers have played a pivotal role in the success of YouTube. In fact, most of the $30 billion that has gone to more than two million creators on the platform is thanks to ads — a feature that the company is known for including within its content. They take about 45 percent of the profit from those video ad sales.
The other dollars come from merchandising and some of the various features that the site provides.
For traditional media outlets that have content housed on the application, YouTube splits the ad money. However, Mohan revealed that it is independent creators and musicians who have walked away with a huge chunk of the $30 billion.
How Does YouTube Remain Relevant Among Competitors?
YouTube may have laid the foundation for sharing videos across the web, but now competitors like Facebook, Snapchat, and TikTok are tapping into their model of paying content creators.
“When I talk to creators, it’s always about growing the overall pie,” Mohan continued. “A share of $10 is always better than the share of $1.”
AfroTech previously reported that Facebook has plans of paying its creators $1 billion by the end of 2022. According to CNBC, between last winter and June, Snapchat paid its creatives $1 million per day. Plus, TikTok has also experimented with dishing out millions to people creating content for the application.