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You have heard of YouTube right? The most popular online video streaming service on the Internet. I am a real fanatic when it comes to videos and I love watch to Animation episodes especially Naruto ( No.1 Animation Series In Japan ). It seems like more and more video sites are popping into the Internet especially for the earning money.
I do have some interest myself to start one "YouTube" but after looking at the cost needed it really stopped me right away. To host a website just like YouTube you need tons of bandwidth in order for it to be successful. And if that was not enough, you need lots of capital involved to market the site. It’s easy to create a YouTube now a days, it only cost as little as US$50 for the script and you get a clone of YouTube.
How Do These Video Sites Make Money?
Mainly the YouTube model of business is based on money spend on bandwidth, disk space and earning from advertisements. Once created, users will get to upload files as big as 100MB per video. Just imagine 100 videos on your site hosted on your site, that’s 10,000 MB which is 10GB already used up. That is only for disk space and how about 100 people watching your 100 videos at one time? That’s 1,000,000 MB of bandwidth! Although it’s cheap to get disk space nowadays but it’s not cheap to buy bandwidth.
When they got truck lots of traffic, they only can earn by one way and that is by advertisement on their sites. Never look down on this as with high traffic volume you can basically earn money and really lots of it by the thousands in seconds. The only thing now that keeps YouTube alive is the advertisers who advertise on YouTube.
Although strangely for myself, ever since I visit YouTube and I never once click an advertisement there before and I was wondering why do people still advertise there. With video getting more and more popular, there also seems to be a trend advertisers are now advertising inside the video itself! And the bigger players from the TV programs are looking into YouTube to advertise and from research of article it actually proof to increase their viewer ship by 5%.
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