Analyzing Revenue Generation Activity Using YouTube: A PewDiePie Essay.

Quantitative literacy will be assessed within the following sub-tasks:

1) Acquisition of a numeric dataset;

2) Interpretation of that numeric dataset;

3) Creating a synthetic model using a known dataset as a base;

4) Extrapolation and explanation of outcomes for the synthetic model.

The quantitative literacy Assessment Task requires at least five (5) in-text references from peer-reviewed academic journals to demonstrate engagement with the body of knowledge.

General rules:

1) Engagement with the Body of Knowledge: No academic journal article may be referenced more than twice;

2) There must be at least five (5) academic journals referenced in the text of the submission;

3) The subject text book must be referenced at least once.

It is proposed students engage with YouTube as the initial medium for the acquisition of the numeric dataset for this study. Students should assume they are in the role of a strategic advisor for a client seeking to create a revenue generating activity using YouTube. In this case, students should assume their examiner is their client.

Students should select a YouTube channel for investigation and then model the potential revenues for that channel based on user views. The channel of choice should have linkages with Patreon, PayPal and any other revenue medium, or service (or vector).

1) Students should synthetically model the revenues of the channel-of-choice and consider strategic relationships between Patreon, PayPal, or other revenue vectors, inclusive of those margins acquired by those vectors.

Diagrams and tables will be essential for this item.

2) Students should include in their model the outgoing costs for the channel-of-choice and generate a synthetic revenue statement, inclusive of gross and net figures.
Diagrams and tables will be essential for this item.

3) Students should assume their examiner is NOT an accountant or a data-analyst and must provide written explanations for each table and model.

Task Response Structure

1) An introduction and background to the synthetic study inclusive of a table numerically demonstrating the value of the channel

2) A diagrammatic representation, tables, written interpretation and explanation synthetically modelling the revenues of the channel-of-choice with consideration for strategic relationships between Patreon, PayPal, or other revenue vectors, inclusive of those margins acquired by those vectors

3) 4. A table numerically extrapolating and demonstrating the outgoing costs for the channel-of-choice and a synthetic revenue statement, inclusive of gross and net figures.Diagrams, models and tables are considered within the word count for this item.

PewDiePie: An Overview

YouTube is one of the greatest online platforms where creator effectively showcases their talent and generates revenue. The purpose of this assessment is to analysis revenue generation activity using YouTube. In order to understand revenue generation process, a YouTube channel i.e., PewDiePie has been selected to understand strategic   relationship between Patreon, PayPal and other revenue vectors in a systematic order.  Apart from revenue generation, a synthetic revenue model with respect to PayPal and Patreon has been demonstrated in a table including revenue statement and inclusive of gross net figure.

PewDiePie is a YouTube channel created by a Swedish person known as Felix who was born in 24th October 1989. The channel was created in the year 2010 and gain 60 thousands subscriber by the end of 2011. According to Money Nation, it has estimated that Net worth of PewDiePie was about 18.7 million dollar by 2011 (Peng, 2018, p.78).  In 2012, the channel successfully gained 1 million subscribers by 2012 and most of the videos were regarding gaming.

Table 1: Number of subscriber per year

(Source: Created By Researcher)

From the above table, it can be stated that PewDiePie is one of the top influencer across world. Presently, PewDiePie rank world’s number one YouTube channel based on subscribers. In the year 2015, it has been found that channel became the first to receive 10 billion video views and appeared in Forbes list of richest YouTube star. In the year 2014, channel has more than 4.1 billion views and earn about 42 million dollar according to Money Nation.

As per the report by Money Nation, PewDiePie became the first YouTube channel to reach 50 million subscribers and net worth was whopping 90 million dollar in the year 2018. From the above table, it can be said that YouTube is one of the great way to earn money through new content. Similarly, it has been evident that a Swedish channel became number one channel in YouTube, which was started in 2010. Furthermore, it has been stated that within a span of 8 years, channel successfully earn most subscriber across world (Soha et al. 2016, p.452).   Moreover, it is comparatively 2.5 times than Hillary Clinton.  

On the other hand, it has been evident that Patreon and PayPal is another source of revenue generation. Most of the payment has been made through Patreon and PayPal; currently Patreon takes about 5% of processed payments. In addition, creators can take 95 % of revenue that they make from subscriptions.

Revenue   of PewDiePie with proper diagram and table

PewDiePie rank number in terms of subscription in YouTube and comes under top 10 influences across world. It has been evident that his subscription growth is comparatively higher as compared to other YouTube creator. According to the statistics, PewDiePie earning over the year from YouTube view is approximately 114 million dollar.

Table 2: Estimated earning per year

(Source: Created By Researcher)

From the above table and graph, it can be said that PewDiePie generate revenue of about more than 100 million dollar from YouTube.  In the year 2015, he had 33 million subscribers, which approximately generate 55 million dollar, which is comparatively high as compared to other YouTube creators.  On the other hand, his subscription growth is gradually increasing day by day. As it was started in the year 2010 and with a span of 8 years, PewDiePie successfully get 77 million subscribers, which is comparatively higher in YouTube history (Jansen et al. 2017, p.438). Payment processing fees can be described as a cost of moving funds from patrons to creator balance.  It can be said that payment processing fees need changes for YouTube creators that depends upon number of subscribers per month. It has been evident that American Patreon users are charged 25 % per payout and 3 dollar for users internationally.

Revenue of PewDiePie with Proper Diagram and Tables

On the other hand, it has been evident that most of YouTube creators use two types of payment gateway such as Patreon and PayPal. According to the statistics of Money Nation, it has been estimated that PewDiePie get an average earning of 12 million dollar per year.  On other words, it can be said that earning revenue generates about 3.400 dollar per hour for a 40-hour week (Wohn et al. 2018, p.474). From the earning of PewDiePie, it can be said that it is not bad for a person who is looking for fulltime job as YouTube creator.  On other side, the earning of a Doctor is approximately 94 dollar per hour on average and 28 dollar for a teacher. Therefore, a person can successfully join YouTube as a career due to continuous growing of technology and digitalization across world.  

Strategic relationship between Patreon and PayPal  

The biggest difference between   PayPal and Patreon are the payout process. In most of the payment gateway, payment processing fees and payout fees have been charged.  It has been evident that PayPal is an open and secure payment gateway that uses pay flow gateway APIs.   PayPal Payments Pro internally using Pay flow Gateway and on other side its API serves that similar features. Merchants of PayPal Payments Pro use PayPal as their credit card processor.

PayPal

The YouTube creators can use bank, account and processor such as PayPal. It provides a complete customize checkout process with the help of API.   It is quick and gets paid as soon as data proceed.  With the help of PayPal, YouTube creator can reduce their workload as generate revenue positively.   

Patreon

Patreon payment processing fees signifies an amount that process of payment will be charged each time when a creator processes a payment. On the other hand, payment processor charges some amount of pledge and a fixed number of cents (Lagiovane, 2018, p.45).  Most of the time, it has been describe as a charge for moving funds to bank from creator balance. The charge of process has been varying and mostly it is 25% per payout for users of American Patreon and approximately 3 dollar for users internationally.

From the above image, it can be said that users over YouTube has been increasing spontaneously and rate of growth of payment gateway is comparatively higher. According to the statistics, the number of YouTube users across globally upsurge to 9.2 percent in the year 2017 as compared to the previous year’s user’s growth. On the other hand in the year 2021, the user growth rate is predicted to slow year-on-year to a 4.9 percent.

According to the statistics of YouTube, it has been found that most of the YouTube creator uses Patreon as a user’s friendly gateway payment system. With the help of PayPal, creator can use bale to post and only patrons paying can able to see it.  It allows subscriber to part in a conversation with their favorite subscriber efficiently. It is an independent governing body so that creator can able to deliver their content through continuous support through Patreon (Giraldom, 2015, p.45). Most of the time, it has been evident that creator has to experience different kind of critics as well as threat through YouTube. On the other side, Patreon allows subscribers to support their YouTube channel for continuous support.  

Strategic Relationship between Patreon and PayPal

Numerical   extrapolating of PewDiePie along with revenue statement 

There are mainly for four factors to determine YouTube earning potential, which have been highlighted below are as follow:

• CPM VS CPC
• Predicted gross earning per 1000 views
• Estimated earning Per Subscriber
• Estimated variance based on engagement of video

Table 3: Estimated Revenue Generation

(Source: Created By Researcher) 

The above table represents a synthetic model of revenue generation by PewDiePie. The above data has been extracted from videos uploaded by YouTube channel.   

It has been evident that YouTube creators earn approximately 7.60 dollar per 1000ad views as per the statics of Tube Mogul (Platformed.info, 2018). Ads are only shown in limited number of video and approximately a YouTube creator can earn about 2000 dollar for every million views. Below is some estimated earning of video uploaded by PewDiePie to extract specific figure of revenue generation by YouTube creator.

Conclusion 

From the above study, it can be stated that YouTube is a great8 platform to showcase their talent to generate revenue gradually. It has been evident that a person can choose YouTube as a fulltime professional career. On the other hand, most of the YouTube creator uses Patreon as payment gateway due to user friendly and build relationship with subscribers. It allows subscriber to support their creator so that they can deliver their content successfully.  Most of the payment has been made through Patreon and PayPal; currently Patreon takes about 5% of processed payments. In addition, creators can take 95 % of revenue that they make from subscriptions. Therefore, a person can successfully join YouTube as a career due to continuous growing of technology and digitalization across world.  

Reference list

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