Global search engine Pex has just published its analysis of YouTube’s content, sharing some never before published insights. Their conclusion is that music is crucial to YouTube’s business/profit margins and matters more than they would like the public to believe.
Pex is in a unique position to see every single view, copy and reuse of content uploaded on YouTube, and its history. Pex found that Music and Entertainment are the only two categories that disproportionately deliver high returns (views) on the investment (amount of content = hosting & distribution cost). Music is the only category that generates the most views consistently and is less costly to host, as the videos are short.
There are some other interesting findings, like:
- YouTube has more gaming videos than Twitch.
- Only a small percentage of all videos ever reach more than 100,000 views, but they get more than 81% of all views on the platform.
- The vast majority of videos with over 1B views are music videos.
YouTube is the most popular video hosting platform on the internet. Billions of people watch billions of hours of content. Tens of millions of users upload content to it every year. These statistics are fairly well known and understood by the wider creator community.
YouTube, however, does not share many details about its platform and best practices are based on anecdotal or past experiences.
Because YouTube is one of the platforms that Pex, actively monitors, they have decided to share some never before published data to help creators across the globe understand this platform better.
Disclaimer on the data
In order to better understand the information shared below, one should know what Pex does. Pex is a search engine, not dissimilar from Google. They index selected platforms, extract audio and video content, fingerprint it and search through it. In addition, Pex collects and updates all surrounding metadata on a regular basis. These include views, comments, likes, dislikes, and any other useful information. They have no direct relationships with any of the platforms. Pex doesn’t have visibility into private and unlisted content, nor do they have any information about the consumers of the content.
That said, they monitor all visible content on all of the supported platforms. They do not estimate, extrapolate or in any way tamper with the data extracted from these platforms.
All the data in this article is based on performance of all publicly available videos as of Dec 31st, 2018.
By Dec 31st, 2018, YouTube had over…
- 5.2 billion videos uploaded
- 1 billion hours of content
- 29 trillion views
- 250 billion likes + dislikes
- 33 billion comments
One of YouTube’s favorite metrics to share is the amount of content that users upload. In fact, in March 2019, Susan Wojcicki, the CEO of YouTube, publicly shared that YouTube users upload more than 500 hours of content to the site every minute.
The actual number is even higher. Just within 2018 more than 621 of hours of content were uploaded every minute, or more than 10 hours of content every second.
The length of videos is increasing. This is driven mostly by long-form content, primarily gaming videos and live streaming.
Users uploaded more than 1.3 billion videos in 2018. As you can see from the graph above, the growth is slowing down.
Once again, when one looks at the number of users uploading content, the growth is slowing down. This is not caused by competition luring users away, but rather by the fact that YouTube has peaked within the connected population. Of the 4 billion people that now own a smartphone, 800 million are blocked from accessing YouTube in China and some large parts of the World still don’t have fast enough connections to consume video content.
This peak also explains why YouTube spends so many resources on keeping users more active within the platform.
And it is working. You can see in the graph above that from 2010 and 2016 YouTube focused on a land grab, getting as many users to participate as it could get its hands on. For the last two years however, they are focusing on improving the engagement with their creators. On average, a user uploads 13 videos every year. Almost three times more than a decade ago.
All the above data is very generic to the platform itself. However, YouTube breaks content into categories. YouTube pre-defines these categories and users select them at the upload time. People & blogs is the default category. That means that if a user does not change the category, the default People & Blogs category is automatically attributed to it. A full list of all categories can be found here.
The graph above visualizes the distribution of newly uploaded content to the most popular categories. Gaming is by far the fastest growing. In fact, in absolute numbers, YouTube has orders of magnitude more gaming videos than Twitch. That does not make them more popular by the viewers, nor does it makes them good revenue generators.
Popularity of Music
In fact, if you look at the table above, you will see that Music, not Gaming, is the most profitable category. This is caused by multiple reasons. Gaming content is by far the longest, which requires YouTube to spend more money on hosting it. Music, on the other hand, is the shortest of all categories. However, it generates the most views per average video.
Even though the Music category received “only” 20% of all views in 2018, it also represented only 5% of all content on the platform. Music and Entertainment are the only two categories that disproportionately deliver high returns (views) on investment (amount of content = hosting & distribution cost).
Also the two most popular categories are also the least “native” to YouTube and YouTube has to license their content.
Here you can find list of top 10 videos per each category as of Dec 31st, 2018.
Forget the Pareto principle (80/20 rule). YouTube’s distribution is significantly worse. Only 0.64% of all videos ever reach more than 100,000 views.
Why does it matter?
Because these 0.64% represent an incredible 81.6% of all views on the platform. Should YouTube remove 99.36% of all underperforming videos, they would save an astounding amount of money and still retain most of the revenue. This is especially true, considering that most of the underperforming videos are on channels that do not meet monetization criteria.
Music is the only category that consistently attracts hundreds of millions of users to watch the same videos over and over. The first video that ever broke 1 billion view mark was a music video. The vast majority of videos with over 1 billion views are music videos.