YouTube is a free platform for sharing videos, making it simple to watch content online. You can also create and upload your own videos to share with others.
YouTube is a free platform where people can watch, share, and create videos.
It’s one of the most popular websites worldwide, with billions of people using it every month.
YouTube has become one of the most popular websites, with users viewing approximately 6 billion hours of video each month.
Without a doubt, this is huge.
Therefore, you can find just about anything on YouTube, from music and movies to tutorials and vlogs.
What makes YouTube unique is that anyone can upload their own videos and build a community of viewers.
Whether you want to learn something new, watch your favorite creators, or have fun, YouTube has something for everyone.
The platform keeps growing and changing, with features like live streaming and YouTube Shorts for quick, vertical videos.
It’s more than just a place to watch videos—it’s a space where people connect, share stories, and even turn their hobbies into careers.
So, let’s read the rich history of YouTube.
YouTube Statistics as of April 2024
With nearly 2.5 billion monthly active users, YouTube solidifies its position as the world’s second most popular social network.
Here are some additional key statistics:
1. User Engagement
YouTube’s vast user base spends significant time on the platform. Approximately 122 million users are active daily, and each visitor spends an average of 19 minutes per day on YouTube.
2. Content and Channels
YouTube’s diverse content library spans over 80 languages, catering to a broad global audience. The platform hosts more than 114 million active channels, with around 321,000 channels having garnered 100,000 subscribers or more. With approximately 3.9 billion videos available, users have endless options for entertainment, education, and more. Additionally, YouTube Shorts have gained popularity, with 826 million Shorts currently on the platform.
3. Subscriptions and Revenue
YouTube’s paid subscription services have seen significant growth. The platform has surpassed 80 million paid subscribers, combining YouTube Premium and Music services. Notably, YouTube Premium alone has reached an impressive 100 million subscribers as of 2024.
4. Demographics
A closer look at YouTube’s user demographics reveals a slight skew towards male users, comprising 54.4% of the global user base, while female users account for 45.6%.
Impressive, right?
However, every success story has a beginning, do you want to read YouTube beginning story?
I know you must be; after all, it’s your favorite platform.
So, let’s get right into it.
The Evolution of YouTube: From Entertainment to Business Platform
Who Founded YouTube and How Was It Created?
YouTube was founded on February 14, 2005, by Chad Hurley, Steve Chen, and Jawed Karim as an online video-sharing platform.
The idea for YouTube emerged during a dinner at Steve Chen’s apartment, where the founders—Steve Chen, Chad Hurley, and Jawed Karim—were taking photos and videos of each other. All three were former employees of the e-commerce company PayPal. They saw a growing demand for an easy way to share videos online, much like the photo-sharing site Flickr made it easier to share pictures.
The team moved to a larger workspace above a pizza and Japanese restaurant in San Mateo, California, to start developing YouTube. Their first video, “Me at the Zoo,” was uploaded on April 23, 2005, and the site became fully operational by November 2005.
What Was the Original Purpose of YouTube?
Their goal was to create an easy way for people to upload and share videos worldwide. They wanted to create a platform that was accessible to everyone, even those with little technical knowledge. Their goal was to develop a service that allowed users to upload and view videos without needing special software or registering for an account. They also focused on making it easy to search for videos.
Before YouTube, there were no effective platforms for online video sharing. So, Chen, with his coding expertise, and Hurley, with his design skills, set out to build an appealing and user-friendly website. Despite its modest beginnings, YouTube has evolved into the most popular video-sharing website and the second most visited site globally after Google.
First Video to Reach One Million Views
The three founders started their work in Menlo Park, California, with the vision of creating a user-friendly platform for sharing videos online. YouTube allowed users to upload, view, comment, like, and share videos with fewer restrictions than earlier platforms.
Over time, YouTube became the leading video-sharing platform worldwide. At that time, sharing videos required several steps and was often costly, as users had to pay to share their videos.
The first video ever uploaded to YouTube was an 18-second clip titled “Me at the Zoo,” filmed at the San Diego Zoo, humorously highlighting the “really, really big trunks” of the elephants behind him.
This success not only drew significant viewership but also demonstrated to brands like Nike the vast marketing opportunities available on YouTube.
YouTube’s Growth Phase in the Pre-Google Era
YouTube’s trademark, logo, and domain were officially registered on February 14, 2005. According to Karim, the motivation came from the difficulty of finding online footage of Janet Jackson’s wardrobe malfunction during the 2004 Super Bowl and the devastating tsunami that occurred that winter.
The first video, a short 18-second clip, was uploaded to the site on April 24, 2005. The video, featuring co-founder Jawed Karim at the zoo, humorously highlights the “really, really big trunks” of the elephants behind him. That same month, YouTube secured $11.5 million in funding.
In May 2005, YouTube launched its beta version. A screenshot from its original homepage shows how much the platform has evolved since then.
By September 2005, YouTube reached a significant milestone when it had its first official video to achieve one million views. This was a Nike advertisement featuring Brazilian soccer star Ronaldinho showcasing his Golden Boots. The video’s popularity not only attracted a massive audience but also showcased the potential of YouTube as a powerful platform for advertising.
On December 15, 2005, YouTube officially launched, leaving its beta phase, thanks to a $3.5 million investment from Sequoia Capital, which allowed the company to upgrade its servers and expand its bandwidth.
In June 2006, YouTube entered a new era of digital collaboration with a deal with NBC. Earlier that year, NBC had requested the removal of a copyrighted “Saturday Night Live” skit titled “Lazy Sunday” from YouTube. YouTube complied and introduced its Content Verification Program to help copyright owners protect their content.
Later, NBC partnered with YouTube to promote its fall television lineup, paving the way for future collaborations with other content creators.
By mid-2006, YouTube users were uploading about 65,000 new videos daily, and the platform received 100 million views per day, capturing the attention of the digital world. Later that year, Google acquired YouTube for $1.65 billion.
YouTube began incorporating video advertisements, and in August 2007, it introduced pre-roll ads despite initial reluctance from Chad Hurley, who feared they might annoy users.
By January 2009, YouTube held a 43% market share with 6 billion video views, cementing its status as the premier platform for creators to showcase their talents.
YouTube’s Early Success: A Brief Overview of Its Growth
YouTube introduced the Partner Program, and enabled creators to earn money from their viral content. This allowed many individuals to turn their hobbies into profitable businesses, with some achieving six-figure incomes through the platform.
In April, 2011, YouTube Live was launched, which allowed the platform to broadcast live events such as concerts, royal weddings, news events, and even the Olympics.
In November, 2014, YouTube introduced Music Key, a service that offered ad-free music video streaming. This service was later replaced by YouTube Red in 2015.
In November 2015, YouTube Red was launched as a paid subscription service offering an ad-free viewing experience. It was later rebranded as YouTube Premium in 2018.
In September 2016, YouTube Go, a lightweight app for offline viewing, was launched by Google. It was designed for areas with limited internet access, allowing users to download videos to watch later.
In April 2018, a tragic event occurred when a 38-year-old named Nasim Najafi Aghdam opened fire at YouTube’s headquarters, injuring three people before taking her own life. She had previously accused YouTube of unfairly restricting her channels.
On May 17, 2018, YouTube Red was rebranded as YouTube Premium, and the YouTube Music subscription service was relaunched. In November 2018, YouTube began testing ad pods, which are two consecutive ads played before a video.
This was intended to reduce ad interruptions during viewing and to enhance monetization. However, ad pods were met with negative feedback from viewers, and a petition was filed against their use.
In September 2019, YouTube introduced Video Reach, an AI-driven marketing platform that uses machine learning to find the best combinations of ads for improved results. This innovation provides advertisers with greater flexibility, better audience engagement, and reduced advertising costs.
By June 2020, as YouTube’s algorithms evolved, traditional video categories became less relevant. The platform shifted to using AI to automatically categorize and recommend videos to users based on their viewing preferences.
In January 2022, with 2.2 billion monthly active users, YouTube became the world’s second-most popular social network, and had set its dominance in the video-sharing space.
YouTube’s Acquisition by Google
As of 2024, YouTube has been around for 19 years, has evolved into a widely-used video-sharing platform and a major hub for short videos under one minute. It has become a place where users can find virtually anything they want, tailored to their preferred viewing time.
Whether you’re looking for entertainment, answers to questions, or tutorials, YouTube has become the go-to solution. With the largest collection of video content and a steady growth trajectory, it now holds a near-monopoly in the online video industry.
In October 2006, Google acquired YouTube for a substantial sum of $1.65 billion. At that time, YouTube was already the leading platform for user-generated content (UGC) videos. Former Google CEO Eric Schmidt described the acquisition as a pivotal step in the evolution of the Internet.
As part of the agreement, YouTube retained its brand, moved to a new headquarters in San Bruno, and kept all 67 employees, including co-founders Chad Hurley and Steve Chen.
This all-stock deal was considered the most expensive acquisition in Google’s eight-year history. Google’s strategy was to leverage YouTube’s vast potential in the video and social networking markets, aiming to increase revenue in the video-sharing space and capitalize on network effects by targeting children, young adults, and content creators.
Following the acquisition, Google continued to expand its reach in the video space with several strategic purchases, including:
Episodic, an online video platform startup, in 2010.
RightsFlow, a music rights management company, in 2011.
Vidmaker, a video editing provider, in 2014.
Launchpad Toys, in 2015, which developed child-friendly apps integrated into YouTube Kids.
In 2005 alone, Google spent nearly $130.5 million acquiring 15 companies, highlighting its aggressive expansion strategy.
YouTube Features over the Years
YouTube has undergone significant updates since its inception. In 2005, it launched its beta site with video embedding, a 5-star rating system, and playlist functions. The following year, new features included “Groups,” user viewing history, and a ten-minute upload limit, along with the ability to upload videos via cellphone.
In 2007, the Partner Program debuted, allowing ads for the first time. By 2008, YouTube supported 480p videos and introduced video analytics. The platform advanced to 1080p in 2009 and launched automatic speech recognition. In 2010, it introduced feature film rentals and the “Thumbs Up/Down” rating system, along with 4K video uploads.
YouTube Live, along with original channels and the YouTube Analytics tool, was launched in 2011. In 2012, it merged with Google Video. The subscription-based Music Key was added in 2014. Later, it evolved into YouTube Red in 2015, which was eventually replaced by YouTube Premium in 2016.
The platform introduced channel memberships in 2018 and the “Two Ads” feature in 2019 while gradually phasing out the classic YouTube Studio. In 2020, it rolled out features like suggested actions for VR and bedtime reminders, along with Video Chapters to improve navigation. By 2021, new features included Permission Support for the Live Control Room and enhancements to Auto Chapters.
Most Viewed YouTube Videos till 2024
In December 2012, “Gangnam Style” became the first YouTube video to surpass one billion views. It remained the most-watched video until June 2020, when “Despacito” overtook it with 6.8 billion views.
The enormous view count from “Gangnam Style” even required YouTube to upgrade its view counter to handle larger numbers. In August 2012, YouTube also provided extensive coverage of the U.S. presidential elections for the first time.
Baby Shark Dance” made history on YouTube in November 2020 by surpassing “Despacito” as the most-viewed video. Just a few months later, in January 2021, it achieved another milestone by becoming the first video to ever reach 10 billion views.
YouTube’s Ad and Subscription-Based Business Model
1. AdWords/AdSense
The majority of Google’s revenue comes from its advertising service, Google AdWords. Advertisers pay varying amounts, ranging from a few cents to over $5 per click, depending on the competitiveness of the keywords, such as insurance, real estate, and loans.
AdWords is the platform where advertisers place ads on YouTube and pay Google for them. These ads are displayed through AdSense, which allows content creators to earn a share of the ad revenue.
2. YouTube Premium
YouTube Premium offers an ad-free experience on YouTube and YouTube Music for a monthly fee starting at $11.99. A portion of this subscription fee is shared with content creators based on how much their videos are watched by Premium members.
YouTube is also testing a more affordable version called ‘Premium Lite’ in some European regions, which offers an ad-free experience but excludes features like offline downloads and background playback.
3. Channel Memberships
YouTube Channel Memberships are monthly subscriptions that provide fans with exclusive content and benefits from their favorite creators. These perks can include exclusive live streams, live chat access, badges, and custom emojis. Pricing varies by creator and country, with options ranging from $0.99 to $99.99 per month in the United States. YouTube takes a 30% share of the revenue generated from channel memberships.
4. Pay-Per-View Content
Some content on YouTube, such as movies, TV shows, and other video content, is available on a pay-per-view basis. Users can either purchase or rent this content for a small fee.
5. YouTube TV
YouTube TV is a streaming service available in the United States that offers live TV from over 100 broadcast, cable, and regional sports networks. The base plan costs $64.99 per month. As of April 2022, YouTube TV has more than 5 million paid subscribers, making it a rapidly growing player in the streaming TV market.
YouTube Partner Program and Ad-Based Revenue for Channels
The YouTube Partner Program (YPP) enables creators to monetize their content through YouTube’s various revenue streams. It follows a revenue-sharing model where creators earn a share of the revenue generated from ads displayed on their videos or from the watch time of Premium subscribers.
For YouTube Shorts, Google allocated a separate $100 million fund to reward creators based on their Shorts’ performance. There are also speculations that YouTube Shorts may soon be integrated into the YPP for revenue sharing.
Current YPP Eligibility Requirements
As YouTube’s popularity has grown, the requirements to join the YouTube Partner Program have become more stringent.
To be eligible, creators must meet the following criteria:
- Adhere to Community and Monetization Guidelines: Creators must comply with all of YouTube’s Community Guidelines and channel monetization policies. Failure to do so may result in rejection during the YPP review process, potential strikes on the channel, or jeopardized earnings.
- Geographic Availability: You must reside in a country where the YouTube Partner Program is available.
- Watch Hours and Subscribers: Your channel must have accumulated at least 4,000 public watch hours in the last 12 months and have at least 1,000 subscribers.
- Google AdSense Account: You need to sign up for and link a Google AdSense account to receive payments.
Once these conditions are met, you can apply for YPP by signing into YouTube and navigating to YouTube Studio. From there, select the “Monetization” option in the left menu and click “Start” under the “Review Partner Program terms” section to acknowledge and accept the terms. This will initiate the YPP review process, and you will be notified of your acceptance or rejection upon completion.
Note: If your channel doesn’t yet meet the requirements of 1,000 subscribers and 4,000 watch hours, you can choose to be notified by email once you reach the threshold by clicking the “Notify me when I’m eligible” button in the Monetization section of YouTube Studio.
How Can a Channel Earn Besides YPP or AdSense?
Even if a channel is rejected from the YouTube Partner Program (YPP) due to non-compliance, there are several alternative ways to generate income. Here are some standard methods:
1. Sponsored Videos
YouTube channels often create sponsored videos where brands pay them to promote their products or services. Companies frequently seek out channels with substantial subscriber bases to create content that drives sales and raises brand awareness.
2. Embedded Advertisements
Channels can also earn through embedded advertisements, including In-stream and In-Video overlay ads. Creators with active advertising agreements can directly incorporate these ads into their videos during the editing process.
3. Affiliate Marketing
YouTubers can participate in affiliate programs offered by various brands, earning commissions on sales generated through their promotional efforts.
For example, if a creator promotes a tool like Canva, they can set up an affiliate account to receive a unique tracking link. By including this link in their video or channel description, they can earn affiliate income for any sales made through clicks on that link.
YouTube Premium Subscription
YouTube Premium (formerly YouTube Red) is a subscription service that offers an enhanced viewing experience, allowing users to watch YouTube videos without ads and download content for offline access.
With a YouTube Premium membership, you gain ad-free access to all of YouTube, along with exclusive features like offline viewing and background playback. It also includes YouTube Music, the platform’s music streaming service, with the same benefits.
Benefits of YouTube Premium
If you’re considering a YouTube Premium subscription, here are some of the key advantages:
- Access to YouTube Originals: Enjoy exclusive original content, including shows, documentaries, and films created by prominent YouTubers and producers.
- Background Play: On mobile devices, the audio continues to play even if you exit the app or lock your screen. For Android users, videos can be watched in picture-in-picture mode while using other apps.
- Offline Viewing: Download videos and playlists to watch later on your smartphone or tablet without an internet connection.
Google may introduce additional features to YouTube Premium in the future, so keep an eye out for updates.
YouTube Studio Overview
YouTube Studio is the essential tool provided by YouTube for managing your channel, offering a wealth of data and insights. If you’re recognized as a partner, you can start monetizing your channel, track your earnings, and access a library of free music for your videos.
How YouTube Studio Can Help You?
To fully leverage YouTube Studio, it’s important to understand its key features:
1. Manage Channels
Switch between accounts easily by signing in and clicking your profile picture in the top right corner to access the account change menu.
2. View Analytics
Analytics are vital for developing your strategy, whether you’re a brand or a creator. YouTube Studio excels in this area, providing insights into viewers, views, impressions, interactions, subscriptions, and watch time. Access these metrics by clicking “Statistics” in the left sidebar.
3. Edit, Schedule, and Upload Videos
This tool allows you to edit, upload, and schedule your videos. While it doesn’t offer extensive editing capabilities, you can make cuts, combine clips, add end screens, apply blurs, and incorporate audio elements.
4. Allow Access for Multiple Users
YouTube Studio supports team collaboration. Navigate to the “Settings” panel, then “Permissions” to invite others. Click “Manage permissions” and use the “+” button after logging in.
5. Design Your Playlists
Organizing your videos into playlists helps viewers easily find content they enjoy. Create new playlists by clicking “Lists” and then “New playlist.”
6. Manage Comments
Filter and manage user comments by allowing, moderating, or disabling them as needed.
7. Subtitle Videos
Enhance your video marketing strategy by adding subtitles in your target markets’ languages, helping reach international audiences.
8. Hide Channel
If you’re starting out with limited content, consider hiding your channel until you have more to showcase. Go to the “Settings” panel, click “Channel,” then “Advanced options,” and choose “Remove material from your channel.”
9. Stay Updated on New Features
Keep up with the latest updates by checking Creator Insider regularly. It’s the best source for news about new features in YouTube Studio and YouTube itself.
Challenges Faced by YouTube
Despite its success as a platform for user-generated content, YouTube has faced challenges monetizing its vast library of videos. Most viewers still turn to services like Netflix, Hulu, or iTunes for premium movies and TV shows. YouTube has struggled to position itself as a hub for professional content, as much of its material isn’t suitable for traditional monetization through subscriptions or advertising.
Future of YouTube in 2025
In 2025, YouTube is introducing new features and changes that may impact creators, including:
1. Simplified channel
A simplified version of the channel will be available to some creators starting in August 2024, removing the “Home” tab to improve navigation. Creators can re-enable the “Home” tab in YouTube Studio to curate their content.
2. Inspiration tab
The Inspiration tab in YouTube Studio will be updated with generative AI to provide curated suggestions for video ideas, titles, thumbnails, and outlines. A shortcut will also be added to take creators directly to the Inspiration tab from other sources, such as top comments, other videos, or their own catalog.
3. Communities
Communities will allow creators to build deeper relationships with their audiences.
4. Community Hub
The Community Hub in the YouTube Studio app will help improve engagement between creators and their audiences.
5. Auto dubbing
Auto dubbing will be expanded to allow hundreds of thousands of creators to automatically add dubbed audio tracks.
6. Monetization requirements
The watch hour requirement to qualify for monetization will be reduced from 4,000 to 3,000 hours.
YouTube is also focused on connecting people with high-quality information, mainly as elections occur worldwide. YouTube will add new labels to inform viewers when content is synthetically generated.
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FAQs
When was YouTube released to the public, and when did it become popular?
YouTube was officially launched on December 15, 2005. It quickly gained popularity, and within a year, it became a major player in the online video space. In November 2006, Google acquired YouTube for $1.65 billion in stock, marking its rapid rise to success.
Is YouTube an American company, and who founded it?
Yes, YouTube is an American company. It was founded by three former PayPal employees: Chad Hurley, Steve Chen, and Jawed Karim. The domain name was registered on February 14, 2005.
What was YouTube initially created for?
YouTube was initially conceived as a video dating site called “Tune In Hook Up,” where users could upload videos introducing themselves and stating what they were looking for in a partner. However, the founders soon realized the platform’s broader potential and pivoted to a general video-sharing site. The first video, “Me at the Zoo,” uploaded by co-founder Jawed Karim, showcased this new direction.
When did YouTube introduce its monetization program?
YouTube introduced its Partner Program in May 2007, allowing creators to earn revenue through advertisements on their videos. This program has since expanded, enabling creators to monetize through various means such as channel memberships, merchandise, and Super Chat during live streams.
How does YouTube generate revenue?
YouTube primarily generates revenue through advertising. It offers different ad formats, such as display ads, skippable and non-skippable video ads, and bumper ads. Additionally, YouTube earns money from subscriptions to YouTube Premium and YouTube Music, which provide ad-free viewing and additional features.
What are YouTube’s guidelines for content creation?
YouTube has strict Community Guidelines that prohibit content involving hate speech, harassment, graphic violence, nudity, and misinformation. Violations of these guidelines can lead to video removal, channel suspension, or even permanent banning.
How can I start a YouTube channel?
To start a YouTube channel, you need a Google account. Sign in to YouTube, click on your profile picture, and select “Create a channel.” From there, you can customize your channel’s name, description, and layout and start uploading videos.
What is the most-watched video on YouTube?
As of now, the most-watched video on YouTube is “Baby Shark Dance” by Pinkfong Kids’ Songs & Stories. It has amassed billions of views, surpassing other popular videos like “Despacito” by Luis Fonsi featuring Daddy Yankee.
How can I earn money on YouTube?
To earn money on YouTube, you need to join the YouTube Partner Program. This requires at least 1,000 subscribers and 4,000 watch hours in the past 12 months. Once eligible, you can monetize through ads, channel memberships, Super Chat, and more.
What is YouTube Shorts?
YouTube Shorts is a feature that allows creators to produce short, vertical videos, similar to content on TikTok and Instagram Reels. It was introduced to help creators engage with their audience through quick, easily consumable content.
