YouTube can exist as a platform for dozens, perhaps even hundreds or thousands, of niche audiences
The content being generated by video streaming platform YouTube supports more than 390,000 full-time equivalent jobs, and generates more than $35 billion to the U.S. gross domestic product (GDP). That is according to a new study published by global advisory firm Oxford Economics. The study cited data from TurboTax, which found that there was a 207% increase in U.S. taxpayers claiming to be a creator, streamer, influencer, or related term as their occupation, from tax year 2018 to tax year 2020.
"It's difficult for people to fully grasp just how much value YouTube's creative ecosystem generates for the country, but our research helps shine a light on the significant impact generated by U.S. creators and businesses on the platform," Hamilton Galloway, Oxford Economics' director of economic impact for the Americas, said in a statement.
It Is The Top Streamer
Google-owned YouTube has proven to draw in audiences across numerous platforms – which certainly contribute to its success. It is also seeing a greater audience than many premium streaming platforms. According to new Nielsen data, YouTube has also remained the most popular streamer on big-screen TVs, and last month was one of the only major services to see an increase in viewing time among U.S. households.
Viewing data last month of YouTube videos, excluding YouTube TV, was up 1.5%, while the platform accounted for 8.1% of total time spent watching television. Most of the other platforms – including such services as Netflix, Disney+, HBO Max, Prime Video, Peacock, and Hulu – were flat or down compared with March 2023. In addition, U.S. TV viewing across broadcast, cable and streaming was down sequentially in April, dropping 1.9% from March.
The fact that YouTube is being viewed by so many on TVs is also noted, said social media analyst Greg Sterling, co-founder of Near Media.
"Approaching 50% of YouTube viewing is on TV screens. This is kind of amazing," Sterling suggested. "YouTube usage is established across demographic segments but in particular among younger audiences – though people use it in different ways."
Channels With Big Subscribers On The Rise
The number of YouTube channels in the United States with 1 million subscribers has also increased by more than 15% year over year between 2021 and 2022 – while the number of YouTube channels making $100K or more in revenue also went up by 5%.
"YouTube continues to have a transformative impact on American society," Tara Walpert Levy, vice president for YouTube's Americas business division, also said via a statement. "The unique community of YouTube creators has driven economic growth and created entirely new and ever-expanding opportunities. Creators are today's entrepreneurs who build businesses, hire employees and power the economy. We are proud to provide them with tools that help unlock their dreams, creative expression, and earning potential."
True Reality TV
YouTube's success can be owed to the fact that it overlaps with social media and traditional video content. And while there are certainly scripted offerings, along with traditional content including music videos, the real driver is creator generated content. In this way, YouTube has become the pinnacle of reality TV.
"YouTube has backed away from original programming – because of cost – and focuses on what the industry calls 'unscripted' content, including creator content," said Sterling. "That kind of content doesn't cost Google anything."
Yet, the content still has significant value for both YouTube and the creators.
"It's a place where creators can actually make money because of Google's very well developed ads ecosystem," added Sterling. "That stands in contrast to other social media apps."
Niche Audiences
What also sets YouTube apart from other services is that it doesn't need all of its content to reach the masses. It can instead exist as a platform for dozens, perhaps even hundreds or thousands, of niche audiences.
"YouTube will remain the most popular of the streaming platforms as it will continue to benefit from its rich archives of content, as well as from the fact that it is accessible from countless devices," said brand marketing expert and social media pundit Scott Steinberg.
"Artificial intelligence and machine learning will further help it deliver better content," Steinberg explained. "But this same technology, along with easier to use video editing tools, will further allow more creators to enter the picture. As that new content is added, it will only increase the reach that YouTube has in the market."
That may not be immediate growth, but it could be steady over the next decade.
"YouTube will continue to incrementally grow," Sterling continued. "And while there are some very entrenched YouTube stars and programs (e.g., MrBeast), there is always room for new talent and viral trends."
