Abstract
We describe and analyze YouTube as a multisided platform with participants that include users, advertisers and content contributors, many of whom play dual and highly varied roles. YouTube’s role in structuring and managing relationships among platform participants with an eye to its own profitability is examined along with a sequence of elaborations on its business model that changed YouTube from a relatively simple service that sold advertisers access to web audiences generated by amateur videos uploaded by other internet users to a service that increasingly features commercial content from a diverse set of sources. This progressive layering of features that themselves are not inherently social on top of a social media foundation is similar to patterns of service elaboration exhibited by other social media services as they matured.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Notes
- 1.
We used the “Advanced Title Search” on IMDb and framed our request as anything released between 1800 and 2012. The total number of results accounted for 2,219,335 and the earliest release was Sallie Gardner at a Gallop traced back to 1880.
- 2.
The brothers in “Charlie bit me” and their parents live in England. In a newspaper article on the video, Lyall (2012), reports the video was uploaded to YouTube by the boys’ father to share with a friend living in the United States in Colorado. It is a good example of how online viral communication can create unexpected hits. Although not uploaded for this purpose, the family has realized significant financial benefits from advertising revenues shared by YouTube and through related merchandise sales (Lyall 2012).
- 3.
- 4.
Vevo is a music aggregator owned by the major record companies (Stelter 2009). Vevo promotes its owner’s videos on its standalone website and partners with YouTube through the Vevo channel.
References
Angus, E., & Thelwall, M. (2010). Motivations for image publishing and tagging on Flickr. Paper presented at the 14th international conference on electronic publishing, Helsinki, Finland.
Armstrong, M. (2006). Competition in two-sided markets. The RAND Journal of Economics, 37(3), 668–691.
Cha, M., Kwak, H., Rodriguez, P., Ahn, Y.-Y., & Moon, S. (2009). Analyzing the video popularity characteristics of large-scale user generated content systems. IEEE/ACM Transactions on Networking, 17(5), 1357–1370. doi:10.1109/tnet.2008.2011358.
Cheng, X., Dale, C., & Liu, J. (2008). Statistics and social network of YouTube videos. Paper presented at the 16th international workshop on quality of service.
Courtois, C., Mechant, P., & Marez, L. D. (2012). Communicating creativity on YouTube: What and for whom? Cyberpsychology Behavior And Social Networking, 15(3), 129–134.
Efrati, E. (2012, July 30). YouTube to double down on its ‘channel’ experiment. Wall Street Journal. Retrieved August 16, 2012, from http://online.wsj.com/article/SB10000872396390444840104577549632241258356.html
Evans, D. S. (2003). Some empirical aspects of multi-sided platform industries. Review of Network Economics, 2(3). p. 191.
Flosi, S. (2012). Press release: comScore releases May 2012 U.S. Online Video Rankings.
Fu, W. W., & Sim, C. C. (2011). Aggregate bandwagon effect on online videos’ viewership: Value uncertainty, popularity cues, and heuristic. Journal of the American Society for Information Science and Technology, 62(12), 2382–2395.
Gill, P., Arlitt, M., Li, Z., & Mahanti, A. (2007). Youtube traffic characterization: A view from the edge. Paper presented at the proceedings of the 7th ACM SIGCOMM conference on Internet measurement, San Diego, CA.
Halvey, M. J., & Keane, M. T. (2007). Exploring social dynamics in online media sharing. Paper presented at the proceedings of the 16th international conference on World Wide Web, Banff, AB.
Hanson, G., & Haridakis, P. (2008). YouTube users watching and sharing the news: A uses and gratifications approach. The Journal of Electronic Publishing, 11(3).
Holahan, C. (2007, November 20). Web video: Move over, amateurs. Business Week. Retrieved August 20, 2012, from http://www.businessweek.com/stories/2007-11-20/web-video-move-over-amateursbusinessweek-business-news-stock-market-and-financial-advice
Honda. (2012). Official 2012 Honda CR-V Game Day Commercial – “Matthew’s Day Off Extended Version”. Retrieved August 10, 2012 from http://www.youtube.com/watch?v=VhkDdayA4iA
Kotler, P. (1986). The prosumer movement: A new challenge for marketers. Advances in Consumer Research, 13, 510–513.
Lanius, C. (2011). Working paper on YouTube commentary: Social interaction in online publics. Department of Anthropology, Columbian College of Arts and Sciences, The George Washington University.
Lyall, S. (2012, February 9). 417.6 Million bites later. The New York Times. Retrieved August 19, 2012, from http://www.nytimes.com/2012/02/10/world/europe/charlie-bit-my-finger-video-lifts-family-to-fame.html?pagewanted=all
Parker, G. G., & Van Alstyne, M. W. (2005). Two-sided network effects: A theory of information product design. Management Science, 51(10), 1494–1504.
Perpetua, M. (2011). YouTube signs major music licensing deal. Retrieved December 14, 2011, from http://www.rollingstone.com/music/news/youtube-signs-licensing-deal-with-national-music-publishers-association-20110818
Sandoval, G. (2008). Universal Music seeing ‘tens of millions’ from YouTube. Retrieved December 16, 2011, from http://news.cnet.com/8301-1023_3-10126439-93.html
Shankman, A. (2010). Why social media is the new source of Hollywood talent. Mashable Social Media. Retrieved August 20, 2012, from http://mashable.com/2010/06/18/social-media-hollywood-casting/
Statistics. (n.d.). Retrieved June 24, 2012, from http://www.youtube.com/t/press_statistics
Stelter, B. (2009, December 8). Music industry companies opening video site. The New York Times, p. B2.
Toffler, A. (1980). The third wave. New York: Morrow.
What is the Individual Video Program, and how does it relate to the YouTube Partner Program? (2011). Retrieved December 14, 2011, from http://support.google.com/youtube/bin/answer.py?hl=en&answer=181636
What’s the difference between advertising with YouTube directly or using YouTube Promoted Videos? (2010). Retrieved December 14, 2011, from http://support.google.com/youtube/bin/answer.py?hl=en&answer=112958
Wildman, S. S., Lee, S. Y., & Song, S. Y. (2012, May). How to make money by giving away content you get for free. Paper presented at the 10th world media economics and management conference, Thessaloniki, Greece.
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2013 Springer-Verlag Berlin Heidelberg
About this chapter
Cite this chapter
Song, S.Y., Wildman, S.S. (2013). Evolution of Strategy and Commercial Relationships for Social Media Platforms: The Case of YouTube. In: Friedrichsen, M., Mühl-Benninghaus, W. (eds) Handbook of Social Media Management. Media Business and Innovation. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-28897-5_36
Download citation
DOI: https://doi.org/10.1007/978-3-642-28897-5_36
Published:
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-642-28896-8
Online ISBN: 978-3-642-28897-5
eBook Packages: Business and EconomicsBusiness and Management (R0)