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Google bought YouTube for $1.65 billion in 2006. This was perhaps one of the most astute commercial decisions in the history of technology, as YouTube worth would go on to become one of the Internet’s most popular websites. With its monetized advertisements and streaming services, it has turned into a website that can be accessed for free yet generates a substantial amount of income.
However, how much is Currently YouTube worth? How much do YouTube’s top stars and influencers earn?
YOUTUBE COMPANY’S NET YOUTUBE WORTH
YouTube has steadily grown in popularity since it first appeared online, and it is now far and away the most popular website for watching videos online. But how does this translate into value?
Up to $160 billion is believed to be the value of YouTube! This is many multiples of what Google paid for it in the year 2006 when they made the purchase.
HOW DOES YOUTUBE MAKE MONEY?
YouTube accomplishes this and derives the majority of its revenue from video advertisements. The price was considered by some to be excessive for a site that generated no income, and it was also unclear how Google would make a profit from the deal.
They accomplished this with video advertisements, the majority of which are skippable and are inserted at various points in “monetized” videos. This ensures that the website and content creators continue to generate cash without requiring users to pay for content. YouTube distributes roughly half of its advertising revenue to content providers while keeping the other half for itself.
Despite the aforementioned split, YouTube’s revenue for 2015 is expected to be $3.5 billion.
The secret to YouTube’s development is not only that the advertisements themselves provide a tremendous deal of value, but also that the value they generate increases at a rapid rate over time. If its revenue was $3.5 billion in 2015, it was projected to be $5.9 billion in 2016, a significant increase.
This is fueled not simply by more ads being displayed and by ads that provide greater value, but also by the website’s rising popularity. Every year, a growing number of visitors visit youtube.com and view these advertisements, pushed by Google’s significant contribution to the rapid development of technology.
Also, as smartphones become more popular and people watch less TV (at least on TVs that aren’t connected to the internet), more and more people choose to watch internet streaming video on their tablets and smartphones instead of a TV channel.
Google has done a really brilliant job of monetizing YouTube videos and then encouraging the entire technology to change towards a landscape that makes online video viewing more convenient.
Not only advertisements but also subscription services such as YouTube Red and YouTube TV contribute to YouTube’s growth. YouTube Red’s $10 monthly membership cost makes it the most profitable iPhone app in March 2018.
In addition, YouTube Remix, a more comprehensive music service, will soon replace Google Play Music. This merely demonstrates how much Google invests in its video-sharing platform. If YouTube were a stock in 2017, it would be YouTube worth at least $75 billion, according to estimates.
This makes it five times as expensive as Twitter, whose market value is estimated to be $14.52 billion. Google’s acquisition of this website has yielded significant returns. Popularity has risen in recent years.
When we examine the rankings of the most popular websites, we find that YouTube is ranked above Reddit and even Facebook, only below Google! The Internet has never seen a website develop at such a rate.
Even people with little knowledge of technology and the Internet can recognize the domain name. According to studies, one billion hours are spent per day watching YouTube when the entire world is considered.
This level of traffic exceeds that of Facebook videos and even Netflix. YouTube makes money because every person who watches a video also sees an ad. This is how the video-sharing giant maintains and increases its value over time.
The website’s success is boosted by the press it and its YouTubers receive for their material. All of these things led to a snowball effect that made YouTube even more valuable and popular than it already was.