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Leo Wattenberg

What to expect from the YouTube Premium launch as a creator

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Moin.

YouTube Premium launched today in 12 more countries: Austria, Canada, Finland, France, Germany, Ireland, Italy, Norway, Russia, Spain, Sweden, and the United Kingdom. But what can creators expect from this expansion?

Firstly: Mostly nothing. At 12€ per month, YouTube Premium is steeply priced, with no real must-have benefits. Because of this, it's unlikely that too many people will use it, so the impact on earnings for creators should be rather small.

Secondly, you can expect a bit more money, as a bit of napkin math shows: Out of those 12€, 6.60€ go to the creators, distributed among creators by watch time. Assuming an average CPM of 1€, a user would need to watch 6600 videos per month to make their Premium subscription as cheap for the creator as a view from a free user. Assuming the average video is 5 minutes long, this would be 33000 minutes of watching a viewer would have to do per month, or 18.3 hours every day. It's unrealistic that the average viewer will spend that much time watching videos, so you very likely are going to see Premium viewers bring you in more money. 

And some FAQ stuff that we already had when YouTube Red launched back in 2015: 

Do creators get paid for the free trial months? As per https://youtube-creators.googleblog.com/2015/10/youtube-red-is-here-seven-things-to.html

Zitat

Creators are the lifeblood of YouTube. So with Google Play Music subscribers instantly joining YouTube Red, we will pay a portion of the revenue we receive from these subscribers to our creators on day 1. Even with 30 day free trials, our creator community will make as much or more as they would have without YouTube Red.

Since the payout is based on Watch Time, does this kill animation channels?

Not really. With Red, channels have been running experiments and found that there is no significant difference in payments between a 5 minute video and a 15 minute video, compared to ad revenue. However, there is a difference once you go for the long-form formats, eg podcasts lasting several hours. Further, music content still is paid per view, rather than watch time, so the huge time sink of "someone left a music playlist running over night" isn't going to affect the split as much. 

 

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On 6/18/2018 at 5:08 PM, Leo Wattenberg said:

Assuming an average CPM of 1€, a user would need to watch 6600 videos per month to make their Premium subscription as cheap for the creator as a view from a free user. Assuming the average video is 5 minutes long, this would be 33000 minutes of watching

CPM is something like cash per mille, I think the actual term is something else, but I can't think of it. So 1€ every 1,000 views, but only full views? So 6,600 full watch time views results in 6.60€.

Would that be watching any videos, or just the ones from one channel? If various channels, would that distribution the 6.60€ amount among 6,600 different creators, if every channel watched was unique, so 0.001€ per creator for one view? Oh, and that is the same as a regular view on average, needing 1,000 views for the 1€.

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@AAAA This is where the napkin math somewhat breaks down: You don't get paid per view. You get paid per people clicking on ads, if advertisers want to pay money to have ads there. The CPM is just a rough estimate at an average that tends to be somewhat helpful when trying to calculate these kinds of things; depending on your content, time of year and such, your actual CPM may fluctuate anywhere between 10 cents and 10 euros. 

CPM doesn't consider full views, just views. So, definitely the math here isn't meant to be used at face value, instead, it's a Fermi estimate showing you roughly in which ballpark the number is going to be in. 

Zitat

 If various channels, would that distribution the 6.60€ amount among 6,600 different creators, if every channel watched was unique, so 0.001€ per creator for one view? 

If you're the only premium user and watch every video equally long, yes. However, the money you pay is thrown into a big pot together with all other premium users and then distributed according to watch time from premium users on the channels. So in an extreme case, if you're a premium user watching a single minute of video in a month, the creator uploading the video won't get 6.60€, instead, they will get whatever a minute of watch time is worth among all premium users. 

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