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Posting videos as a source of revenue

YouTube content creators, anyone who uploads videos onto the site, are able to monetize their videos in several ways. Many choose to make a living off of the content they post to YouTube. The YouTube Partner Program and Multi-channel network are the most well-known and used avenues of monetization.

Partner Program

The YouTube “Partner Program,” initiated December 2007, is the monetization plan offered to YouTube channels and content creators. The program allows a channel to share the ad revenue generated from their content through “advertisement, paid subscription and merchandise". Becoming a YouTube Partner gives content creators access to YouTube Space and other strategic benefits . The partnership requires YouTube partners to agree to strict copyright guidelines which demand all original content and to submit to several content restrictions. The content restrictions are outlined in their Community Guidelines and bans: nudity/pornography, hate speech, language that directly incites violence, illegal activity like bomb-making and illegal underage drinking as well as gratuitous violence . These content restictions are interesting as they are more strict than typical freedom of speech limitations set forth by the US Government.

Ad revenue for the YouTube Partner Program is created through the association with Google AdSense. This requires all partners to register for an AdSense account. Google AdSense is a program that connects targeted advertisements based on specific content within a given webpage, and as it sounds, tailors the content created by the YouTube partners to running ads. While official financial figures have not been release to the public due to YouTube partners’ non-disclosure agreement, it is estimated that YouTube keeps, on average, 45% of all ad revenue. Most partners collect $0.30 CPM to $2.50 CPM (Cost Per Mille impressions). YouTube Partner Program boasts of an increase from 30,000 partners in 2011 to 1 million partners in 2013 . All YouTube channels are eligible for the Partner Program.

Multi-channel Networks

See also: Multi-channel network

Multi-channel network are organizations that work with a variety of YouTube channels to offer assistance in areas such as "product, programming, funding, cross-promotion, partner management, digital rights management, monetization/sales, and/or audience development" . As of 2013, there are 32 widely recognized MCNs.

MCNs are alternative, though not necessarily separate and/or exclusive, route of monetization for YouTube content creators. Typically, MCNs form within a niche of specific content which provide unique support to content creators. Typically, MCNs as umbrella entities have the ability to offer their content creators corporate sponsorship in the form of product placement and technical support. MCNs are conducted much like a corporation and have offices and designated places of business. The development of this form of business is based upon the television/film industry business model. Contracts with content creators are similarly based upon the example set forth by television and film.

Currently, the culture and industry of MCNs are rapidly changing. These changes come with some benefits and drawbacks but happen without much fanfare or media coverage/acknowledgement there have been several purchase of smaller MCNs by large corporations. Notably, in early 2014, DreamWorks Animation bought Big Frame through AwesomenessTV for $15M; and Disney bought Maker Studios for $500M.