Movies

YouTube turns 20 years old. How it changed TV as we know it

BBG News

The blurry 19-second YouTube clip, which sparked everything off, didn’t initially seem like it would become a viral hit.

In a raw recording taken at the San Diego Zoo, Jawed Karim – one of the platform’s creators – could be seen expressing admiration for the elephants visible in the background. He commented, “What’s fascinating about them is their incredibly long trunks.

20 years ago, the video labeled “Me at the Zoo” became the inaugural content posted on YouTube, paving the way for an innovative form of broadcasting, similar to traditional television.

Originating humbly, this platform provided a space where people worldwide could share amusing, trending videos capable of sweeping across the web like wildfire, garnering tens of millions of views and generating several million dollars in revenue.

YouTube has evolved into not a mere tech operation, but a formidable force in television.

Stars like Justin Bieber gained widespread recognition through YouTube and social media personalities such as MrBeast have leveraged their substantial fan bases to establish influential entertainment corporations. Nowadays, platforms that once hosted viral videos like “Charlie bit my finger” are also streaming major music events such as Coachella and NFL football matches.

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According to a recent analysis by research firm MoffettNathanson, the digital media giant YouTube – owned by Google – is estimated to have generated approximately $54.2 billion in revenue last year. This places it as the second-largest media company globally, just behind The Walt Disney Company. Intriguingly, the report refers to YouTube as “the new monarch of all media,” highlighting its dominance across various platforms.

Robert Thompson, director of Syracuse University’s Bleier Center for Television and Popular Culture, stated that YouTube was a massive game-changer when it first appeared. Its arrival 20 years ago marked significant shifts not just in how we consume television, but also in our very perception of what TV is.

Hollywood Inc.

YouTube revealed an increase in viewers tuning into live events such as Coachella and brief video clips on traditional television screens. Additionally, sports broadcasts, with the NFL leading the charge, are experiencing a surge in popularity.

Since 2023, YouTube, led by its CEO Neal Mohan, has dominated the U.S. television landscape, accounting for a substantial 12% of total TV viewing in March. This surpasses the viewing figures on competing streaming platforms such as Netflix and Tubi, as reported by Nielsen.

A larger number of viewers prefer watching YouTube videos on television sets instead of mobile devices or computers. On a typical day, these viewers watch over a billion hours of YouTube content on TV, as stated on the company’s official website.

According to MoffettNathanson analysts, this platform stands out more than any other due to its extensive reach, powerful brand, and widespread distribution networks, enabling it to link creators, advertisers, and viewers in a unique way.

For individuals such as Dhar Mann, a previous marijuana businessman who began sharing videos on YouTube in the year 2018 without any prior experience in filmmaking, these developments have paved the way for numerous possibilities.

Currently, Dhar Mann Studios, located in Burbank, manages approximately 125,000 square feet of production area and employs around 200 individuals. Additionally, they collaborate with about 2,000 actors annually on family-oriented shows that address a range of topics including bullying, narcolepsy, chronic inflammatory bowel disease, and hoarding, focusing on how young students and families navigate these challenges.

In the realm of cinema critique, I can confidently say that, as per Forbes’ estimations, last year alone, Mann pocketed a staggering $45 million – a testament to his unparalleled influence in the industry. The primary source of this fortune? You guessed it: YouTube, the digital empire where he reigns supreme.

40-year-old Mann expressed that he didn’t need to wait two years for a studio to approve his deal and pay him, instead, he was able to start earning money immediately once people started watching his videos on YouTube. In his opinion, YouTube isn’t just the future of television; it is television itself, and more and more people are recognizing this truth.

Humble origins

Initially, when YouTube commenced operations in San Mateo, its creators hadn’t envisioned challenging the television sector.

Initially, they conceived it as a video-based dating platform allowing users to rate their submissions. However, when this approach failed, the creators chose to expand the platform to accommodate various types of videos. Users ultimately propelled YouTube’s popularity by sharing their videos on MySpace.

In a recent interview, Amjad Hanif, YouTube’s vice president of product, stated: “We’ve provided a means for creators and individuals everywhere to reach a worldwide audience and express their passions globally.” Prior to YouTube, this was not an option. Now, regardless of whether you are in the United States or regions like Thailand, Southeast Asia, or South America, you can connect with a global community of creators for learning, education, and entertainment.

Business

In the early days, before the cosmetics empire, literary accolades, and high-profile partnerships, I, much like many others, was simply a determined aspirant attempting to carve out a niche for myself in the vast world of YouTube.

One significant strategy that contributed to YouTube’s massive user base was their approach of not only supporting but financially compensating the content creators – those who were actively sharing videos on the platform.

2007 marked the commencement of YouTube’s partnership program, allowing content creators to generate income via ads. This financial incentive encouraged creators to continue sharing their work, thereby attracting more viewers and advertisers to YouTube.

Thompson stated that YouTube was where one would go to discover a fresh, innovative art form. He explained that the concept of user-generated videos – be it something created or simply shared – distinguished it from traditional television programming like sitcoms or reality shows.

Obtaining their initial earnings motivated some pioneering content creators to turn YouTube into a professional career path. With the convenience of recording themselves and uploading videos for global viewing, new talents gained unprecedented exposure in the entertainment industry, reshaping how Hollywood discovers fresh talent.

Sam Grey, CEO of comedy studio and talent management company Stapleview, stated that the traditional boundaries for discovering talent are no longer limited to just five specific locations,” said Sam Grey. “Nowadays, with the power of social media, you don’t need to relocate to a major city to make it in the comedy world. The best talents will emerge regardless of where they are based.

At age 25, makeup tutorial creator Patrick Starrr amassed his first million dollars on YouTube, prompting him to quit his position at MAC Cosmetics in Florida and relocate to Los Angeles.

Starrr, aged 35, stated in an email that he’s living evidence of transforming a passion into a career, and finding purpose in strength. He further mentioned that YouTube provided him with a platform to speak, which he hasn’t let go ever since.

At that point, it was an emerging field, and creators were essentially learning on the job. They figured out whom to recruit for their teams and how to secure their own sponsorships. Some even encountered disbelieving parents.

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Chucky Appleby, currently a top executive at MrBeast, once found himself frequently receiving criticism about it from his mom. She’d often ask, “Why do you feel the need to be on YouTube?” To which he responded, “Mom, it has potential to become a source of income for me.

Last year, Beast Industries, the company run by MrBeast, generated a revenue of $473 million, as reported by Business Insider. Over the past month, content created by MrBeast, such as challenges and stunt videos, accumulated a staggering 3.6 billion views on YouTube, according to Appleby’s statement.

Appleby, 28, said he’s since bought a Jeep for his mom.

Piracy and safety concerns

However, with the rapid growth of YouTube’s fame in its initial phase, the number of potential copyright infringement lawsuits also significantly increased.

As a movie critic, I recall vividly how YouTube swiftly struck partnerships with music giants such as Universal Music Group back in the day. Fast forward to 2007, and Paramount Pictures, owned by Viacom (the same entity that governs MTV), filed a lawsuit against Google – who had acquired YouTube just a year prior for a staggering $1.65 billion – over copyright violations. This legal battle was eventually resolved in 2014.

Google aimed to allay the entertainment industry’s worries by introducing Content ID. This system identifies unlicensed content in uploaded videos for their media partners, giving them the option to either remove these videos or monetize them through ad placements.

According to Hanif, the YouTube Partner Program played a significant role in establishing a complete loop, which in turn fostered economic prosperity and contributed to YouTube’s growth.

The company also navigated concerns from parents over what kids could see on the platform.

2015 saw the debut of a kid-friendly app by YouTube, featuring age-suitable videos and parental control options. However, in 2019, YouTube and Google found themselves in a $170-million settlement with the Federal Trade Commission and New York’s attorney general due to allegations that they had been gathering data from children under the age of 13 without their parents’ consent. Since this settlement, YouTube has revised its approach to advertising on content intended for young viewers.

The firm assures that it gathers only essential video data for the functioning of its service and avoids showing personalized advertisements in these videos intended for children.

Hollywood Inc.

Google is edging nearer to converting the iconic Spruce Goose hangar in Playa Vista into a modern workspace and manufacturing center, marking one more indication of how technology titans are broadening their influence in the neighborhood surrounding Hollywood.

Growing competition

YouTube’s aspirations broadened significantly in 2017 when they debuted YouTube TV. This service features over 40 live television channels, catering to an increasing demographic of individuals opting out of traditional cable subscriptions (cord-cutters) and those who spent their childhood years on YouTube.

YouTube progressively turned into a platform for can’t-miss events, with Coachella being among the first to stream there starting from 2011. By 2023, YouTube started broadcasting out-of-town network TV transmissions of NFL Sunday Ticket games.

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YouTube gradually became a go-to destination for must-watch events, starting with Coachella in 2011. In 2023, YouTube began streaming out-of-market television broadcasts of NFL Sunday Ticket games.

Initially viewed as an affordable alternative to traditional cable for younger generations, YouTube TV has recently raised its monthly price to $82.99, which left many users feeling disgruntled.

YouTube has profited greatly as an early leader in video content, yet it now encounters escalating competition from social media contenders such as Instagram and TikTok who are aggressively courting influencers to share their content on their respective platforms.

YouTube debuted a new type of brief video content named “Shorts” in the year 2020 as a means to strengthen its competition against TikTok. As of today, YouTube reports that these Shorts garner an average of 70 billion views per day.

Hollywood Inc.

Emerging evidence indicates a shift in how youth engage with entertainment, yet it appears that Hollywood hasn’t fully adapted to this evolving trend.

As a passionate movie buff, I’ve noticed how YouTube has expanded the financial horizons for content creators beyond just ads and sponsorships. For instance, they’ve introduced individual channel memberships as an additional revenue stream. Personally, I think this sets YouTube apart from other platforms because it’s more generous in sharing profits with creators, provides valuable data analytics, and has a vast global reach.

Not all strategies turned out to be winning ones. In 2016, YouTube launched a number of premium scripted shows on its subscription service, aiming to rival Hulu’s offerings. However, the majority of these shows didn’t garner enough popularity on YouTube. Interestingly, “Cobra Kai,” a show derived from the “Karate Kid” movie series, initially premiered as an original YouTube production but eventually became successful on Netflix instead.

Companies involved with media are taking note of successful content strategies on YouTube, such as the surge in popularity of video podcasters. In response, Spotify is aiming to tap into the video podcast market, and Netflix is looking for opportunities to venture into this area as well.

Ian Hecox, head of humor channel Smosh, characterized the past two decades on YouTube as a series of ebbs and flows, marked by peaks, troughs, and adjustments in algorithms. Despite these fluctuations, he remains optimistic about the platform’s future. Smosh’s viewership encompasses individuals who once watched Hecox during their teenage years, now grown into adults with children who also tune in to Smosh.

37-year-old Hecox remarked, “It’s quite extraordinary, really. Fully grown individuals approach me, sharing that I was a significant part of their childhood.”

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He commented, “It’s amazing, almost unbelievable. Adults who should be my contemporaries tell me they remember me from their childhood.

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2025-04-23 13:35

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