the creative economy
Crossing 1000 subscribers is a milestone that puts a channel in the top 9% of creators on YouTube. I am proud to say that after six months I have arrived at that goal, but I am also surprised what I learned. In this FREE world I had to consider all of the free labor that is needed to create these platforms. Free labor that I have been participating in for most of my career. Art very rarely makes money, but I was surprised to learn that even the top 10% of creators on youtube are probably still making for free.
Over 6 months I learned that YouTube splits ad revenue 55/45, with their creatives. To be honest, I was unaware of this when I started. I assumed it was higher. If a viewer decides to remove ads with a premium option, creators receive a portion of their monthly subscription. This part is still confusing to me. If you decide to join as a member, the creative receives a 80/20 split. From my research the average channel, who consistently posts, will need to produce around 50 long form videos. An average channel can be monetized within 6-18 months. This means your favorite creator either makes 55% of the ad revenue or they are creating for free.
I don’t say this to discourage anyone but I wanted to let you know what I learned. This is happening in every creative field, and I need to tell the truth.
For sake of transparency, I created over 50 long form videos in 5 and a half months to hit 1,000 subscribers. This has been my full time job since August. As of posting this, the channel is about 2000 watch hours from being in the partner program.
At this pace, I should arrive to my destination in 4-6 weeks.
OPEN THE GATES
I recently started posting long form conversations with filmmakers about their experiences in the film industry. Throughout our conversations I was informed of monetized YouTube channels that distribute others content, an internet TV station of sorts. These channels offer original programming through a flat licensing fee to the filmmakers, or as access to their audience with no associated fee.
The Numbers are Real, The Name are Not
FREE Movies channel has around 3 million subscribers and provides filmmakers with an up front fee. From my conversations, this can range up to around $5000. Films on this channel vary in popularity of views, with some amassing over 25 million. These contracts are pre youtube collaboration so the views are not attached to the creator. Any future financial success will not be split with the creator. These contracts are non-exclusive, meaning a filmmaker can still sign future deals with the same piece of content. Some filmmakers do this on multiple platforms. Some of the contracts I was shown seem to operate in perpetuity, meaning forever.
Through a basic search engine I was able to find youtube revenue calculators. The numbers vary because of the lack of information, but the numbers ranged between $25,000-$100,000 depending on the CPM of the channel. This would be a great business model for maximum profit, but its not exactly in the best interest of the creatives who’s content makes the revenue to begin with. A piece of the puzzle that is paramount for the whole machine to operate.
I know some of this is not fun to read, but I promise you the rest of this article I am going to make a choice to look towards the positive. I think there is a better way and I want to invite you on the journey.
VHF 21
I am approaching YouTube like a TV station. I guess I'm finally using that broadcast degree. A living project that will grow and adjust as time progresses. A choose your own adventure film, with no end. What’s exciting is that I have no clue how you will watch what I create, or what you will find first. You might jump around and find something from a year ago. This is a massive responsibility on my end. It means that each piece I make must have the mission baked into the subtext.
Television is a medium that sets context for what I am proposing. If you are unaware of the TV business model, a creator can buy a block of airtime and the channel can play your content for you. You could also operate on local access of public access if you had something of educational value. Until of recent this was deemed a public service. It was good for the society to be educated and informed. This way of communicating meant an audience sees the same thing at the same time. While previously an incredibly difficult task, I recently learned I could buy airtime in Los Angeles for around $100. This got me thinking.
My next feature requires me to make some original tv content. Jackson, the father in the film, runs a local access tv station, VHF 21. This station represents collective transparency in the film, so what would happen if I tried this in real life? This means I’m going to need to license some films by people I meet along my way. These will also be a collaboration on Youtube where I will be splitting the revenue with you on day 1. These elements will be a small, yet vital part of the world building. This collaboration can be used to help you start your own channel or be an outlet to showcase what you are making with a larger audience. What would happen if your work started earning immediately?
If you are interested in learning together, then I’ll see you over on VHF 21
Let’s see what moves the machine.
Bronson
