YouTube is one of the greatest online platforms where creator effectively showcases their talent and generates revenue. The purpose of this assessment is to analysis revenue generation activity using YouTube. In order to understand revenue generation process, a YouTube channel i.e., PewDiePie has been selected to understand strategic relationship between Patreon, PayPal and other revenue vectors in a systematic order. Apart from revenue generation, a synthetic revenue model with respect to PayPal and Patreon has been demonstrated in a table including revenue statement and inclusive of gross net figure.
PewDiePie is a YouTube channel created by a Swedish person known as Felix who was born in 24th October 1989. The channel was created in the year 2010 and gain 60 thousands subscriber by the end of 2011. According to Money Nation, it has estimated that Net worth of PewDiePie was about 18.7 million dollar by 2011 (Peng, 2018, p.78). In 2012, the channel successfully gained 1 million subscribers by 2012 and most of the videos were regarding gaming.
|
Year |
Subscribers |
|
2011 |
60000 |
|
2012 |
1 million |
|
2013 |
4 million |
|
2014 |
19 million |
|
2015 |
33 million |
|
2016 |
50 million |
|
2017 |
60 million |
|
2018 |
77 million |
Table 1: Number of subscriber per year
(Source: Created By Researcher)
From the above table, it can be stated that PewDiePie is one of the top influencer across world. Presently, PewDiePie rank world’s number one YouTube channel based on subscribers. In the year 2015, it has been found that channel became the first to receive 10 billion video views and appeared in Forbes list of richest YouTube star. In the year 2014, channel has more than 4.1 billion views and earn about 42 million dollar according to Money Nation.
As per the report by Money Nation, PewDiePie became the first YouTube channel to reach 50 million subscribers and net worth was whopping 90 million dollar in the year 2018. From the above table, it can be said that YouTube is one of the great way to earn money through new content. Similarly, it has been evident that a Swedish channel became number one channel in YouTube, which was started in 2010. Furthermore, it has been stated that within a span of 8 years, channel successfully earn most subscriber across world (Soha et al. 2016, p.452). Moreover, it is comparatively 2.5 times than Hillary Clinton.
On the other hand, it has been evident that Patreon and PayPal is another source of revenue generation. Most of the payment has been made through Patreon and PayPal; currently Patreon takes about 5% of processed payments. In addition, creators can take 95 % of revenue that they make from subscriptions.
Revenue of PewDiePie with proper diagram and table
PewDiePie rank number in terms of subscription in YouTube and comes under top 10 influences across world. It has been evident that his subscription growth is comparatively higher as compared to other YouTube creator. According to the statistics, PewDiePie earning over the year from YouTube view is approximately 114 million dollar.
|
Years |
Earning (million Dollar) |
|
2011 |
18.7 |
|
2012 |
25 |
|
2013 |
38 |
|
2014 |
42 |
|
2015 |
55 |
|
2016 |
68 |
|
2017 |
75 |
|
2018 |
90 |
Table 2: Estimated earning per year
(Source: Created By Researcher)
From the above table and graph, it can be said that PewDiePie generate revenue of about more than 100 million dollar from YouTube. In the year 2015, he had 33 million subscribers, which approximately generate 55 million dollar, which is comparatively high as compared to other YouTube creators. On the other hand, his subscription growth is gradually increasing day by day. As it was started in the year 2010 and with a span of 8 years, PewDiePie successfully get 77 million subscribers, which is comparatively higher in YouTube history (Jansen et al. 2017, p.438). Payment processing fees can be described as a cost of moving funds from patrons to creator balance. It can be said that payment processing fees need changes for YouTube creators that depends upon number of subscribers per month. It has been evident that American Patreon users are charged 25 % per payout and 3 dollar for users internationally.
On the other hand, it has been evident that most of YouTube creators use two types of payment gateway such as Patreon and PayPal. According to the statistics of Money Nation, it has been estimated that PewDiePie get an average earning of 12 million dollar per year. On other words, it can be said that earning revenue generates about 3.400 dollar per hour for a 40-hour week (Wohn et al. 2018, p.474). From the earning of PewDiePie, it can be said that it is not bad for a person who is looking for fulltime job as YouTube creator. On other side, the earning of a Doctor is approximately 94 dollar per hour on average and 28 dollar for a teacher. Therefore, a person can successfully join YouTube as a career due to continuous growing of technology and digitalization across world.
Strategic relationship between Patreon and PayPal
The biggest difference between PayPal and Patreon are the payout process. In most of the payment gateway, payment processing fees and payout fees have been charged. It has been evident that PayPal is an open and secure payment gateway that uses pay flow gateway APIs. PayPal Payments Pro internally using Pay flow Gateway and on other side its API serves that similar features. Merchants of PayPal Payments Pro use PayPal as their credit card processor.
PayPal
The YouTube creators can use bank, account and processor such as PayPal. It provides a complete customize checkout process with the help of API. It is quick and gets paid as soon as data proceed. With the help of PayPal, YouTube creator can reduce their workload as generate revenue positively.
Patreon
Patreon payment processing fees signifies an amount that process of payment will be charged each time when a creator processes a payment. On the other hand, payment processor charges some amount of pledge and a fixed number of cents (Lagiovane, 2018, p.45). Most of the time, it has been describe as a charge for moving funds to bank from creator balance. The charge of process has been varying and mostly it is 25% per payout for users of American Patreon and approximately 3 dollar for users internationally.
From the above image, it can be said that users over YouTube has been increasing spontaneously and rate of growth of payment gateway is comparatively higher. According to the statistics, the number of YouTube users across globally upsurge to 9.2 percent in the year 2017 as compared to the previous year’s user’s growth. On the other hand in the year 2021, the user growth rate is predicted to slow year-on-year to a 4.9 percent.
According to the statistics of YouTube, it has been found that most of the YouTube creator uses Patreon as a user’s friendly gateway payment system. With the help of PayPal, creator can use bale to post and only patrons paying can able to see it. It allows subscriber to part in a conversation with their favorite subscriber efficiently. It is an independent governing body so that creator can able to deliver their content through continuous support through Patreon (Giraldom, 2015, p.45). Most of the time, it has been evident that creator has to experience different kind of critics as well as threat through YouTube. On the other side, Patreon allows subscribers to support their YouTube channel for continuous support.
Numerical extrapolating of PewDiePie along with revenue statement
There are mainly for four factors to determine YouTube earning potential, which have been highlighted below are as follow:
|
Number of subscriber earn by video |
Number of total video views |
Estimated video earning (Dollar) |
Average Earning per video (Dollar) |
|
|
Gross earning |
9655 |
4483595 |
8295 |
38 |
|
10452 |
6744045 |
12476 |
38 |
|
|
75462 |
2481597 |
7569 |
38 |
|
|
Net figure |
142568937 |
304587 |
40 |
Table 3: Estimated Revenue Generation
(Source: Created By Researcher)
The above table represents a synthetic model of revenue generation by PewDiePie. The above data has been extracted from videos uploaded by YouTube channel.
It has been evident that YouTube creators earn approximately 7.60 dollar per 1000ad views as per the statics of Tube Mogul (Platformed.info, 2018). Ads are only shown in limited number of video and approximately a YouTube creator can earn about 2000 dollar for every million views. Below is some estimated earning of video uploaded by PewDiePie to extract specific figure of revenue generation by YouTube creator.
Conclusion
From the above study, it can be stated that YouTube is a great8 platform to showcase their talent to generate revenue gradually. It has been evident that a person can choose YouTube as a fulltime professional career. On the other hand, most of the YouTube creator uses Patreon as payment gateway due to user friendly and build relationship with subscribers. It allows subscriber to support their creator so that they can deliver their content successfully. Most of the payment has been made through Patreon and PayPal; currently Patreon takes about 5% of processed payments. In addition, creators can take 95 % of revenue that they make from subscriptions. Therefore, a person can successfully join YouTube as a career due to continuous growing of technology and digitalization across world.
Reference list
Ali, M.A., Arief, B., Emms, M. and van Moorsel, A., 2017. Does the online card payment landscape unwittingly facilitate fraud?. IEEE Security & Privacy, 15(2), pp.78-86.
Giraldo Lozano, D.J.M., 2015. Subscription Based Crowdfunding A look into an alternative monetisation model for music
Jansen, B.J., Jung, S.G., Salminen, J., An, J. and Kwa, H., 2017, October. Leveraging Social Analytics Data for Identifying Customer Segments for Online News Media. In Computer Systems and Applications (AICCSA), 2017 IEEE/ACS 14th International Conference on (pp. 463-468). IEEE.
Lagiovane, A., 2018. # Ad: How YouTube Went From “Broadcast Yourself” to Broadcast Brands and Why It Matters(Doctoral dissertation, Ohio University).
Peng, H., 2018. The Audio-Visual Teaching Plan for College-Level Specialty-Oriented Career Planning Courses. US-China Education Review, 8(6), pp.227-238.
Pillay, A., 2017. Exploring alternative revenue sources that can be utilised to improve advertising revenue at SABC public broadcasting radio stations (Doctoral dissertation).
Platformed.info (2018), PayPal, on 12th December 2018, Available from: https://platformed.info/how-paypal-youtube-and-stumbleupon-gained-rapid-traction-through-piggybacking/
Rogers, W., 2014. Sustainability and the role of revenue generation. A guide to the best revenue models and funding sources for your digital resources, p.9.
Soha, M. and McDowell, Z.J., 2016. Monetizing a Meme: YouTube, Content ID, and the Harlem Shake. Social Media+ Society, 2(1), p.2056305115623801.
Vonderau, P., 2016. The video bubble: Multichannel networks and the transformation of YouTube. Convergence, 22(4), pp.361-375.
Wang, X.L., Yoonjoung Heo, C., Schwartz, Z., Legohérel, P. and Specklin, F., 2015. Revenue management: Progress, challenges, and research prospects. Journal of Travel & Tourism Marketing, 32(7), pp.797-811.
Wohn, D.Y., Freeman, G. and McLaughlin, C., 2018, April. Explaining Viewers’ Emotional, Instrumental, and Financial Support Provision for Live Streamers. In Proceedings of the 2018 CHI Conference on Human Factors in Computing Systems (p. 474). ACM.
Essay Writing Service Features
Our Experience
No matter how complex your assignment is, we can find the right professional for your specific task. Contact Essay is an essay writing company that hires only the smartest minds to help you with your projects. Our expertise allows us to provide students with high-quality academic writing, editing & proofreading services.
Free Features
Free revision policy
$10Free bibliography & reference
$8Free title page
$8Free formatting
$8How Our Essay Writing Service Works
First, you will need to complete an order form. It's not difficult but, in case there is anything you find not to be clear, you may always call us so that we can guide you through it. On the order form, you will need to include some basic information concerning your order: subject, topic, number of pages, etc. We also encourage our clients to upload any relevant information or sources that will help.
Complete the order form
Once we have all the information and instructions that we need, we select the most suitable writer for your assignment. While everything seems to be clear, the writer, who has complete knowledge of the subject, may need clarification from you. It is at that point that you would receive a call or email from us.
Writer’s assignment
As soon as the writer has finished, it will be delivered both to the website and to your email address so that you will not miss it. If your deadline is close at hand, we will place a call to you to make sure that you receive the paper on time.
Completing the order and download
