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Elaborative Business Model Of YouTube – Detail Explanation

Updated on: Sep 21, 2021
Business Model of Youtube - Featured Image

Introduction

In this in-depth case study, we will deal with the business model of Youtube mainly focusing on its target audience, product variants, and market share.

Youtube came into the market decades back and they change the entertainment industry by its fabulous business model, marketing strategy, and brand positioning. Youtube marketed itself as a free video publishing & viewing tool, and through that, they generate billions of revenue. Youtube has marketed itself because it has a huge audience and expanded its global market. So let’s get started by knowing a bit more about Youtube.

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About Youtube

From a small video streaming platform to a large service with record revenue of 19.8 billion dollars in 2020  youtube came a long way through its extraordinary business model.

In February 2005, In America, Youtube is founded by Steve Chen, Chad Hurley, and Jawed Karim. In October 2006 youtube is bought by Google and after that, there is no turn back for youtube.

Today youtube is the second most visited website worldwide with more than one billion monthly users, who watch more than one billion hours of videos each day.

Now youtube has a large number of services to offer like youtube music, youtube premium, youtube TV & youtube shorts.

Let’s learn about the business model of youtube in the coming section. 

Business Model Of YouTube

A business model explains how an organization creates, delivers, and captures value in economic, social, cultural, or other contexts. Business model construction and modification are also known as business model innovation, and it is a component of business strategy. Let’s take a closer look at it.

Youtube Market Share

By Google Adsense youtube makes money through the advertisement and also content creator makes money from the advertisement.

On a worldwide basis, youtube has a 4.25% market share and by India’s social media stats there is 9.92% of the market share by youtube. Youtube is growing very fast and it will take more market share shortly.

In India, approximately 16% of India’s population is using youtube daily. There are almost 265 million monthly active users on youtube.

Time to find out about their products and services in detail.

Youtube Products

In today’s time, anyone can upload their videos on youtube and there are no fees to uploading a video and no fees for viewing a video. The content creator can upload their videos by creating a youtube channel. A channel can contain an infinite number of videos. Any person can open a youtube channel to upload their video. So, for that reason people love youtube, and that’s why youtube is generating so much revenue.

For such a high demand youtube, youtube is creating more products. Here are the listicle of youtube products:

Youtube Kids

Take a look at the younger audience, Google also has a separate YouTube Kids app. This is a curated way for kids to surf videos on youtube kids that are made only for the younger audience, with some extra parental controls, by that their parents can control their surfing in this app. It’s not a separate service; it’s more of a restricted version of the same service.

Youtube Music

Youtube music is the latest product of youtube, launched in June 2018, after Google play music was discontinued, google launch its new music platform, to break into the music streaming business.

Youtube Music allows users to watch music from a large library of songs and albums, as well as music videos, and users can create and manage their playlists. While Youtube Music can be accessed in an ad-supported version for free, you can get the real benefits when you took the premium versions of youtube by paying them.

Youtube Premium

Youtube Red is renamed Youtube Premium when Youtube Music Launched in June 2018, it’s not a different platform from youtube, it’s a paid version of youtube where you will no get to see any ad or any video break.  With a Premium subscription, individuals can listen to the audio of any YouTube video in the background. In an addition, You can download and watch videos offline.

Youtube also has an app just for its content creators named YT Studio, by YT Studio content creators can measure how their channel is going on youtube.

Time to find out Youtube’s pricing list for every service they are giving.

Youtube Pricing List

YouTube Premium is the road for its others premium, ad-free services. If you take YouTube Premium, you can listen to ad-free music on YouTube Music, and also your kids will watch ad-free videos in their youtube kids app.

The price for youtube premium is :

  • For 1 month they charge Rs. 139.00(with tax)
  • For 3 months they charge Rs. 399.00(with tax).

This is the price strategy led out by YouTube. So let’s explore the target audience of the company. 

YouTube Target Audience

YouTube has something for everyone, with over 300 hours of video uploaded every minute. While it attracts an equal number of men and women, YouTube is still extensively dominated by men. Men spend 44 percent more time on the site per month than women, and men account for 90 percent of the 51 categories of YouTube material examined by OpenSlate. If you’re looking to debunk stereotypes, YouTube isn’t the place to be. Women are interested in makeup and skincare, whereas men are interested in sports and gaming. Dogs — well, and East Asian music — bridge the gender gap.

This concludes the case study of YouTube’s business model. So, let’s wrap the findings below. 

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Conclusion

YouTube, if there is one company that understands what it takes to be at the top of the video streaming platform results, is it. Why? Because they are aware of how people search for products and services online.

Youtube is honing their digital marketing strategy to ensure that they are at the forefront of digital marketing and giving shoppers what they want, easily and quickly. Youtube, which has also established itself as the second most visited website in the world, should continue to create more interesting content and implement it in the best way possible if it is to remain as competitive as it is now.

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Aditya Shastri

Lead Trainer & Head of Learning & Development at IIDE

Leads the Learning & Development segment at IIDE. He is a Content Marketing Expert and has trained 6000+ students and working professionals on various topics of Digital Marketing. He has been a guest speaker at prominent colleges in India including IIMs......[Read full bio]

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