Could we ever take an ownership stake in YouTube accounts?
I was thinking about YouTube accounts last night, and it got me thinking - could we ever buy ownership stakes in a YouTube account like you do a stock?
Top performing YT accounts have netted totals anywhere between $1-5mm over the course of 2-3 years (however long the YT Partners program has been around). The more subscribers/traffic their channel gets, the faster they grow and the quicker they start generating a nice chunk of change for themselves. Sure its not really HUGE chunks of change, but a 5% stake in an account earning $4mm would still get you 200k.
Keep in mind these are mostly just kids no older than the average WSO user who had a gaming, prank, or skit channel that took off when they were in HS or something. VitalyTV, the dude who does a lot of pranks, has just under 400mm total video views since 2011, which roughly translates into a little less than 100k/month in earnings, and thats just one example.
So I was wondering, would it be possible to create a market and shares for YT accounts? We can buy stakes in pro athletes now, and to me it looks like the way that works and the rational behind it is pretty similar to this idea.
Does anyone have any thoughts or AM I just nuts?
Not sure where you got your numbers. Regardless, there are maybe two youtubers who make $4+ million per year. There are also only maybe two handfuls who make $100k+ per month. Smosh is one of the most viewed channels on YouTube (not including VEVO channels) and makes somewhere around $2 million per year on just views. The only guy who is raking it in as a solo Youtuber is PewDiePie.
There are three ways to get paid on YouTube. One - you run ads on the bottom of your videos and hope people click on them. Two - you run video ads and hope people stay to watch the video and don't run ad blocker. Three - You are part of a network such as Machinima, Maker, StyleHaul, etc. that pay you per views and handle all the advertisements.
The third option is the only lucrative avenue anymore for Youtubers and you can invest in many of these networks as VCs have provided funding for them in the past. The first two make much less because it fluctuates wildly and are low paying ads. I don't think investing in the actual person will ever be an option.
But I see what you're saying, it's just a thought I had. Great explanation though, thanks.
It's definitely an interesting concept and could work for some users if they weren't attached to the networks. They would need a reason to want funding though, many of these Youtubers would not want to give up part of their earnings down the road for an upfront sum when they don't need it. For example, iJustine spends $0 making her videos and are just her talking in front of a screen. Why would she take funding and give away 5% of her earnings?
An example where it could work, a youtuber like "devinsupertramp" or "freddiew" spent a lot of time/money on creating their videos where investing in them could allow them to create even better videos. By the way, if anyone hasn't viewed either of the two, above mentioned youtubers, I suggest you do... masterpieces.
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