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The YouTube Phenomena

Three guys, one garage, one idea: the end result – a dating service called YouTube. Ten years ago, Jawed Karim uploaded the very first video to his new website designed for people looking for hookups. Karim was one of the three founders of YouTube, also former PayPal employees, who uncovered something so big, they did not know what to do with it. Luckily, the users knew better – instead of uploading dating videos, they used it to share their personal videos (10 Years Ago). But put a pin in that thought for a minute.

Let’s think of something crazy here – why do we spend our time on YouTube? It offers no practical value while Facebook allows you to keep in touch with friends, and Twitter lets you get quick news updates. You can pull the pin out now, because when users started uploading videos of all kinds, they decided the future of the website. Because one major reason why we use video sharing service is to feed our need for sharing cool stuff that happens in our lives. But, that’s not the whole story. Do you want to find out how YouTube keeps content creators – creating, and viewers – watching? Get comfy, it might get a little complicated.

It’s All about What People Want

YouTube is, first and foremost, a social media platform. In regular English that means the website gives us a sense of online community. That means people can watch videos while interacting with each other through comments. The whole idea is that anybody can be a YouTuber and even go viral. Direct contact between the viewers and the content creators makes the platform engaging. Commenters themselves tell the channels what they want to watch next.

Bryan Mueller, calls it a “Participatory Culture”. He states that viewer dictated content supports a more flexible way of content production. Think about the video format – on TV we only watch video segments of at least 30 minutes. Now suddenly even a 30 second video is not outside of the norm. Pair that with the fact that your favorite videos are available anytime of the day, on demand and you have a success story.

The Only Free Cheese Is in a Mousetrap

It is safe to say that YouTube is not going anywhere anytime soon. It transformed the way we discover the information on the web. Statistically, it is one of the largest search engines, coming in only second after – wait for it – Google itself. That means there enough of a user base to populate a country. Millions of videos uploaded, billions of people watching, and yet the website is free to use. If you’ve ever taken any introductory economics course you’d know that there is no such thing as free lunch – everything has a cost. Google makes money mostly through advertising banners and in-video ads. YouTubers make money through a partnership program that pays them according to how much views they get per video and per channel.

A big user base like that doesn’t go unnoticed by other companies who try to sell their products. Promoted content, which is a type of native advertising, took YouTube with a storm. It is a very effective, but highly controversial method of generating sales. Some popular channels, like the Unboxing Therapy, consist mainly of promoted content and get millions of views per each video. You guessed it right, it is an unboxing channel, where the host provides an unboxing experience without having to buy the thing in the first place.

The problem with native advertising, is that the viewers have to be aware that they are watching sponsored content. FTC has cracked down on the issue with guidelines on how to properly disclose endorsements.

The Internet Sensation

Let’s address the elephant in the room – virality of YouTube videos. Remember Gangnam Style music video by Psy? You probably remember that it was the first video to break the billionth view mark. But, it never stopped the momentum and currently is sitting at roughly 2.5 billion views. There are only few websites that can boast about having as big of an impact on the Internet community as YouTube does.

There is whole bunch of science behind a video going viral that can be summed up with the idea of an inside joke (Videos go viral). A group of people share a video among each other, others want in on the joke, and as the circle gets bigger, the view counter grow. Realistically, only a small percentage of videos ever go viral. How can others share the spotlight when the whole world is watching? The website is full of massively talented people, so things only get more creative from here. Think back when Nyan Cat popped up in 2011 – it went viral and got tons of views – we know that. However, there is also an around the world version, remixed version, 10 hour version and reaction videos, including cats watching cats watching the Nyan Cat. This is just one example out of many, many more.

Video Domination

There are two main ways YT can continue to grow. First, consider that many 18 year olds would find PewDiePie, a popular gaming channel YouTuber, more famous than most Hollywood A-list celebrities (3 Strategies). If YouTube sells them as such, their popularity will skyrocket, in turn bringing more views to the website itself. Second, YT has to be very accessible and a pleasant experience for the viewer. That means minimal buffering times and a responsive website/app.

YouTube and Google have the monopoly of the Internet search engines. In a way – YouTube is one of the video frontpages of the Internet. Can you be the next Nyan Cat or impress the world with your moves like Psy? Maybe you’d like to make a living off of your own creativity. Either way, you’re free to choose your own way.

Works Cited

10 Years Ago Today, YouTube Launched as a Dating Website. (n.d.). Retrieved September 27, 2015.

3 Strategies to Unlock YouTube's Potential in 2015. (2015, January 6). Retrieved September 26, 2015.

Mueller, B. (2014). Participatory culture on YouTube: A case study of the multichannel network Machinima. MEDIA@LSE MSc Dissertation Series, 35-35. Retrieved September 26, 2015, from http://www.lse.ac.uk/media@lse/research/mediaWorkingPapers/MScDissertationSeries/2013/msc/104-Mueller.pdf

Why videos go viral. (n.d.). Retrieved September 21, 2015.

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Social Impact of YouTube

How to guides, let’s plays, movies, video blogs, news, music - YouTube has it all. If ten years ago somebody would tell me that you can learn how to fix a car, catch up on the latest news, get a math tutor and research some insane 9/11 conspiracy theories, and all on the same website, I’d probably have that person taken to a mental hospital. It is remarkable how far content streaming services have come in such a short period of time, while managing to stay relevant after so many years.

Come to think of it - why do we spend our time on YouTube? You still kind of use Facebook to keep in touch with your friends; you still kind of use Twitter for an efficient way of getting news updates from primary sources; same goes for LinkedIn, where you can look for job connections. However, watching panda sneeze or cat playing a piano is not something essential to our daily lives, yet those videos are listed among the most viewed category.

It’s All About What People Want

YouTube is, first and foremost, a social media platform. That means it’s main function is to create a network consisting of social hubs/channels, where people can watch the stuff they like while interacting with each other. In other words, the service has a symbiotic relationship with its users - more video posts mean more people visiting the website, and vice versa. The whole idea is that anybody can be a YouTuber and go viral by posting original and quality content. Ease of interaction between the viewers and the content creators is what makes the platform relevant(always adapting), because commenters themselves tell YouTubers what they want to watch next.

Audience dictated content changed our understanding of what’s acceptable, including the length of the videos. Before, we’d only watch TV where content was in minimum of 30 mins segment - now suddenly even a 30 sec video is not outside of the norm. As our lives get more and more fast paced, and our attention spans get shorter, nobody has the time nor the patience to watch TV anymore. As for YouTube, it is always right there in your computer or in your phone, anytime of the day, on demand. Increased popularity also increased the quality of the video production, as many YouTubers have the disposal of advanced visual effects software to give their videos a movie like feel. As TV and movie industries’ pockets got lighter, they adapted by producing projects exclusively for YouTube.

The Only Free Cheese Is in a Mousetrap

It is safe to say that YouTube is not going anywhere anytime soon, because it has transformed the way we discover the information on the web. Statistically, it is one of the largest search engines, coming in only second after - wait for it - Google itself. That means there is a huge user base for that website, millions of videos uploaded, billions of people watching, and yet the website is free to use. If you’ve ever taken any introductory economics course you’d know that there is no such thing as free lunch - everything has a cost. Google’s monetization strategy is done mostly through advertising banners and in-video ads. YouTubers are paid according to how much views they get per video and per channel.

A big user base like that doesn’t go unnoticed by other companies who are trying to sell their products. Promoted content, which is a type of native advertising, took YouTube with a storm. It can be very effective, but highly controversial, method of generating sales. Channels like the Unboxing Therapy consist mainly of promoted content and get tons of views per each video. You guessed it right, it is an unboxing videos channel, where the host provides an unboxing experience without having to buy the thing in the first place. That is very impressive, considering the fact that almost every video in the channel is promoted content, since the channel gets free stuff from sent to them from companies to unbox.

The problem with native advertising, is that the viewers have to be aware that they are watching sponsored content. There have been many cases of gaming channels posting positive reviews or first impression videos and receiving compensation from game publishers. FTC has cracked down on the issue with guidelines on how to properly disclose endorsements.

The Internet Sensation

What if I told you that you can become famous overnight just by uploading a video. It’s that simple. There are only few websites that can boast about having an impact on the Internet community as much as YouTube does. There is whole bunch of science behind a video going viral that can be summed up with the idea of an inside joke. Think of it this way, your friends start a heated discussion of a movie you haven’t seen yet, that makes you want to see that movie as soon as possible so you can discuss it with them and feel included. That’s pretty much how a video begins its journey to become viral - a group of people share a video among each other, others want in on the joke, and as the circle gets bigger, the view counter grows.

This is what makes YouTube brilliant, everybody can become an Internet sensation. However, only a small of videos ever go viral. How can others share the spotlight, when the whole world is watching? Remember that this is a social platform that thrives on participation. And, as the site is filled with massively talented people, things only get more creative from here. Think back to 2011 when Nyan Cat was uploaded, it went viral and got tons of views - we know that. However, there is also an around the world version, remixed version, 10 hour version and reaction videos, including cats watching cats watching the Nyan Cat. This is just one example out of many, many more.

YouTube is like a weird social experiment - nobody really needs, but everyone loves it. There are ways YouTubers try to make it useful by posting original content that provides both educational value while keeping things entertaining. They get rewarded by views, that translates into cash and allows them to make a living out it. Others temp their luck and try to go viral. All of this works because of the interactivity of the whole process. Users post whatever they want, others - decide what they want to watch. Made by the people, for the people.

As Kurt continued his journey of exploring a new life as a farmer, he stumbled upon several challenges. One of which was buying a tractor, which he found to be a somewhat of an unwelcoming experience. Main reason for that is because he just wanted a tractor for the sake of just having one, without necessarily doing any research on the purchase first. John Deere is the first name that came to his mind, because tractor brands are not common knowledge among the city folk. What I found interesting is his fascination with new and shiny tractors that in a way reminisces with mine. When I was about 10 years old, I always wondered what a new tractor or a crane looks like, because every time you see one, it has already been used, covered in filth and dirt. I always wondered what it would be like to see a new and a shiny piece of machinery, and I always acknowledged the fact that it was an odd thing to wonder about. Who thinks about shiny tractors in their free time? Then again, I was somewhat of a weird kid. Luckily, my dream came true, as I was driving by a show where agricultural machinery was on display, and I finally saw it...it was beautiful indeed!

Also what caught my attention was how Kurt decided to add sheep to his farm “collection”. There are some things I didn’t know, like that there are types of grass that don't provide any nutrition for the animals. However, there are some problems Kurt doesn’t realize how lucky he is not to have to be dealing with. The main trouble people have with sheep herding are the wolf attacks. To keep the wolves away you have to get shepherd dogs (there are even special breeds who can overpower and kill a wolf), and those dogs have to be trained and fed regularly to be effective. Kurt also goes on to explain the difference between keeping sheep and goats, where sheep are dirty and sloppy, while goats are clean and tidy. Overall, I liked this chapter, it contained a lot interesting pieces of information; however, I was a little disappointed that the author personally didn’t kill the lambs, I think that would’ve been a very interesting experience to read about, since it is an integral part of a farmer’s life.

I was very happy that professor assigned me to read Timmermeister’s book, because now I can finally learn where the delicious ingredients in chipotle come from! However, jokes aside I find it ironic to be reading this book about a guy who opened a restaurant, being myself a guy who wants to open a restaurant someday. I’m not sure whether Kurt’s story will serve me as an inspiration or a discouragement, but he gives very interesting insights to the restaurant business as well as the hardships of owning a farm. I’ve been on a farm, lived there for short periods of time and one thing I learned for sure that it is a lot of hard work.


What struck out most to me is how the author describes darkness. Living in the city we never actually realize what pitch black really is. First time I experienced it was during a camping trip I took with a group of camping enthusiasts. In the city everything just gets dim, much like when many parents turn off the main light in the kids' room kids, but leave a night light, to keep the boogeyman away. It is most evident when you’re flying on a plane, 19,000 feet high, and the city lights somehow illuminate your airplane window. Pitch black is very spooky and unnerving, that's when you start doubting yourself about whether those scary stories we told each other during our childhood were actually true. I know it, I felt it, and I don’t know how I fell asleep that night with the boogeyman waiting outside my tent...

Investment Banker

How to start a small business? One way would be to open a large company and wait six months, the other would be to call an expert. Chances are you have heard of this term, but you are not quite sure what it means. To put it simply, investment banker is the individual in charge of raising capital for the firm. Invest money and acquire capital, sounds simple right? The investment process is a little more complicated than that. Being in the business of the financial markets, which are considered to be the most efficient markets, investment banks are the largest financial institutions today.

So, what does an investment banker do? As John Paul Getty once said "If you owe the bank $100, that’s your problem. If you owe the bank $100 million, that’s the bank’s problem." The most obvious is that they work at investment banks, like Morgan Stanley, JPMorgan Chase, Goldman Sachs and such. Their main function is to help in big and complicated financial transactions. They give advice on how much can a company be worth, what’s the best way to handle a deal if the banker’s client wants to make a large purchase, which can include a buying another company or a company merger. Banker also help in the process of selling bonds to raise funds for client groups. Creating the documentation for the Securities and Exchange Commission needed for a company to go public can be a complicated process in itself and that is something an investment banker can assist you with.

Two descriptions help to sum up investment banker’s duties to their clientele:

•  Provide expert advice
•  Facilitate deals and financial transactions

Providing expert advice

Generally speaking, the investment banker will save your company time and money by pointing out the risks associated with a project before the company moves forward. In theory, the investment banker is a financial doctor who has a finger on the pulse of the current investing climate. Businesses and institutions reach out to investment bankers for advice on how to plan their development in the best way possible, investment bankers, in their turn, can tend the needs of their customers and recommend an action in the context of the present state of economic conditions.

Facilitating deals and financial transactions

An investment banker serves as the middle man between a company and investors when the company wants to start selling stocks or bonds. Investment bankers assists with pricing financial assets in a way to maximize revenue for the company while navigating regulatory requirements of SEC and other regulatory agencies. Often, when a company holds its initial public offering (IPO), which is simply the starting price on the stock, an investment bank will buy all or much of that company’s shares directly from the company.

Now, I have to be honest, I’m not an investment banker, but that is something I’m considering to explore as a career choice. The reason I became interested in the field is because one of my professors was lecturing in my finance class, which I thought was incredibly boring (go figure), about the investment banks and how they serve as investment vehicles and have massive influence over the economy in the United States. Mainly, what stood out was the act that before 1930’s banks were allowed to operate as both a commercial bank and an investment bank. The Glass-Steagall act separated them into two different entities, because people were blaming investment banks for causing the Great Depression. Well that and all the parties, booze and huge bonuses for doing mostly nothing. Now if you'll excuse me, I have to return some videotapes.