Launched in early 2005 in the pre-iPhone era of the internet, YouTube began as a quirky site where users uploaded funny, random videos—a do-it-yourself television service. Today, it’s a global media powerhouse and home to everything from movie trailers to video podcasts, livestreams, and much more.
YouTube’s presence is so deeply ingrained into modern digital culture that Nielsen data (see here) from June 2024 show it has a bigger share of US TV screen time than Netflix does (9.9%, compared to Netflix’s 8.4%).
History
YouTube was founded in February 2005 by former PayPal employees Steve Chen, Chad Hurley, and Jawed Karim to give users a platform for uploading, viewing, and sharing videos.
The entertaining nature of user-generated content helped drive significant traffic. By the end of 2005, YouTube was already seeing millions of viewers per day, and YouTube also had its first truly viral video in December of that year with “Lazy Sunday.”
In just its second year, YouTube was acquired by Google for $1.65B in stock (read investment memo). That prescient acquisition in November 2006 gave Google an inroad into the online video market as well as another outlet for securing advertising revenue.
YouTube went on to produce viral stars like MrBeast, whose videos featuring elaborate challenges and large-scale stunts have made him one of the biggest celebrities to emerge on the platform. His channel has 310 million subscribers as of August 2024, accumulating a total of 56 billion views.
Other content milestones have included Korean rapper Psy's "Gangnam Style," released in 2012, becoming the first YouTube video to reach 1 billion views while helping bring K-pop into the global mainstream. The platform itself reached 1 billion monthly users in 2013 and hit 1 billion hours of daily watch time in 2016.
Today
YouTube’s engagement is driven by an algorithm combining user data and machine learning to predict which videos a user might want to watch next. The algorithm makes its selections based on factors ranging from a user’s watch history to how many comments a related video has received. Hear YouTube star MrBeast give his quick take.
Despite its size, the platform has maneuvered to respond to the emergence of TikTok (see 1440 overview). 2020 saw the debut of YouTube Shorts, a video format inspired by the popularity of bite-sized TikTok videos. The under-a-minute clips provide users with easily digestible content while offering a competitor to TikTok and Instagram Reels.
By November 2021, YouTube announced it had reached 2 billion monthly logged-in users, further underscoring its status as the largest video-sharing platform in the world.
Future
As YouTube looks to its third decade and beyond, AI and short-form content are likely to be significant drivers of viewership. The company has signaled it will lean into AI-powered features for users, such as giving anyone the ability to make AI-generated backgrounds for YouTube Shorts.
YouTube has also focused on the living room, moving to capture attention from users who both simply prefer the platform’s content as well as households who have left traditional cable companies but still seek typical cable-style content (what is YouTube TV?). Users are increasingly streaming content over television, a trend that has elevated YouTube into streaming wars with Netflix and Amazon.
Launched in early 2005 in the pre-iPhone era of the internet, YouTube began as a quirky site where users uploaded funny, random videos—a do-it-yourself television service. Today, it’s a global media powerhouse and home to everything from movie trailers to video podcasts, livestreams, and much more. Want to learn more about the streaming giant? Check out our 5-minute explainer here.
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According to the latest estimates, some 500 hours of content are posted to YouTube every minute. Rewinding the clock, the video that stands at the beginning of that massive and constantly growing stream of content is this one—“Me at the Zoo.” It was uploaded in April of 2005 by YouTube co-founder Jawed Karim and shows him at the San Diego Zoo talking about elephants.
From music superstars like Justin Bieber and Taylor Swift to streamers like PewDiePie and MrBeast, the ranks of YouTube’s most-subscribed-to accounts includes a mix of everything from celebrities whose YouTube presence complements the rest of their persona to stars who made a name for themselves solely from the platform. This ranking from Search Engine Journal breaks down the 30 biggest YouTube accounts as of June 2004.
How did YouTube grow from a startup in 2005 to a media powerhouse with more than 2.5 billion monthly logged-in users who watch more than 1 billion hours of video every day? That’s what this podcast interview with Bloomberg tech reporter Mark Bergen on NPR’s Fresh Air tries to get to the bottom of. Bergen is also the author of “Like, Comment, Subscribe,” a book about the rise of YouTube.
Less than two years into its existence, YouTube was acquired by Google—who sensed it could be the home of the next wave of user-generated content—for $1.65B in 2006. But was it a good deal? Here the hosts of the popular Acquired podcast explore whether the deal measures up to the mythology, starting with a memo from early investor Sequoia Capital.
YouTube has become one of the world's leading entertainment platforms almost entirely on the back of users who upload their own content. An estimated 3.7 million new videos get uploaded to YouTube each day, but why do creators do it? Some do it for sharing, some do it to build an audience, but a small, very popular fraction are able to make money off their content.
Even though YouTube now garners so many viewing hours each day that it’s a credible rival to Netflix, the video giant has zeroed in on an opportunity to capture even more user attention than it already commands: the living room TV. In this conversation with Bloomberg, YouTube CEO Neal Mohan maps out how the company is taking what it’s learned thus far and embedding itself into the “lean-back” TV viewing experience.
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