📷 Image Credit: Bloomberg 👆
By: Lucas Shaw and Mark Bergen
TL;DR: We know ads on YouTube make money, but advertising dollars are down in this climate. YouTubers are pivoting and finding success with paid subscriptions.
Advertising on YouTube makes creators get creative by earning revenue with paid subscriptions. Jerry Dryer from the YouTube channel BigJet TV is an excellent example of how vital subscription has become on YouTube. Since December, Dryer and his manager have been able to double more than their audience that pays a subscription for their “higher tier” videos. They make nearly $20,000 a month gross on premium subscriptions, take out YouTube’s fees, and net approximately $14,000 monthly. These subscriptions are in addition to average YouTube subscriptions and allow fans to get exclusive videos from the creators they like.
Not long ago, trying to charge people to watch YouTube videos would have been a death sentence on the platform, but with Covid-19, subscription-based channels are the highest growth revenue stream today. Advertising guidelines have become stricter on YouTube, which has decreased ad spending. Subscription-based channels on YouTube for those who make content not able to monetize through ad spending provide a means to an end to put food on the table for creators. Smart move!
Written by: Sofia Christensen, Intern
Edited by: Lisa Knight, COO & Mentor