But while YouTube itself might not be making money, plenty of other people are making money on YouTube.
We recently took a look at some individual vloggers who are pulling in six-figure salaries from their uploaded videos.
Publishers with a lot of premium video can do even better. At least a handful of them are already generating annual revenue in the millions off of YouTube, multiple sources tell us.
Video publishers are increasingly focusing on YouTube as a serious part of their revenue strategies. Producing video content is extremely expensive; not many web sites generate enough traffic to recover those costs on their own, even if they sell out their ad inventory. So syndication is key.
Since it began monetizing videos and sharing revenue with publishers, YouTube has become an increasingly important part of publishers’ syndication strategies. For instance, a source familiar with the matter tells us that video game site IGN — a News Corp property and the fifth biggest YouTube channel in terms of uniques, according to comScore — is seeing “eight-figure monthly views and seven-figure annual revenues.” The site recently hired a full-time manager in charge of its YouTube strategy.
A source close to YouTube, though unfamiliar with IGN’s numbers specifically, says these sorts of returns are “definitely happening more.”
This is great news for Google, even if it isn’t getting rich off YouTube itself just yet. Videos of kittens and fails are great, but they aren’t the stuff of advertisers’ dreams. Google needs to get more premium video on its platform. If top publishers are already making millions there, more of it will come.
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