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Created January 17, 2025 17:46
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Comprehensive Analysis: YouTube vs. Watchit

Comprehensive Analysis: YouTube vs. Watchit


Operating Costs and Profitability

Platform Gross Revenue (per content) Retention/Operating Cost (%) Total Operating Costs Creator Earnings % Earnings for Creator
YouTube $10,000 45% $4,500 $5,500 55%
Watchit $10,000 5% $500 $9,500 95%

Projection for 1 Million Views

Platform Gross Earnings per 1M Views Total Operating Costs Creator Earnings % Earnings for Creator
YouTube $1,000 $450 $550 55%
Watchit $1,000 $50 $950 95%

Detailed Analysis

YouTube Operating Costs

  • High costs due to centralized infrastructure, including development, maintenance, and servers.
  • Retains 45% of revenue from ads and subscriptions, significantly reducing creators' earnings.

Watchit Operating Costs

  • Utilizes decentralized infrastructure operated by community members who earn rewards for renting out their resources (e.g., storage, bandwidth, and computing power). This eliminates the need for centralized servers and reduces operational expenses.
  • Retains only 5% of revenue to cover network and transaction costs, passing most earnings to creators.

Creator Profitability

  • YouTube: Creators retain only 55% of revenue due to high platform costs and centralized control.
  • Watchit: Creators retain 95%, offering much higher profitability thanks to minimal intermediary costs.

Disadvantages of YouTube Compared to Watchit

  1. Unfavorable Revenue Split

    • YouTube retains 45% of ad revenue, leaving only 55% for creators.
    • Watchit allows creators to keep 95% of their earnings.
  2. Dependence on CPM

    • Earnings on YouTube rely on CPM, which varies by region, niche, and advertiser demand.
    • Watchit provides direct monetization options (subscriptions, rentals, purchases) independent of CPM.
  3. Percentage of Monetized Views

    • Only 40%-60% of YouTube views are monetized due to ad placement.
    • Watchit enables monetization of 100% of interactions (subscriptions, donations, purchases).
  4. Regional and CPM Variations

    • YouTube CPM rates vary significantly by region, limiting creators in low-CPM countries.
    • Watchit offers global monetization with no regional restrictions.
  5. Algorithm Dependency

    • YouTube's success depends on a centralized algorithm that prioritizes watch time.
    • Watchit eliminates algorithm dependency, providing visibility directly through community engagement.
  6. Lack of Transparency

    • YouTube provides limited data on CPM, monetized views, and revenue breakdowns.
    • Watchit ensures complete transparency in performance metrics, transactions, and earnings.
  7. High Operating Costs

    • YouTube’s centralized infrastructure inflates operational costs, impacting creator earnings.
    • Watchit’s decentralized model reduces costs, passing the savings to creators.

Conclusion

Watchit outperforms YouTube by offering:

  • Higher profitability: Creators keep 95% of revenue compared to 55% on YouTube.
  • Transparent and flexible monetization models: Independent of algorithms, regions, or advertiser demand.
  • Decentralized infrastructure: Minimizes costs and ensures fairness.

For creators, Watchit provides a more equitable, efficient, and profitable alternative to YouTube, ensuring control over earnings and greater autonomy in monetization.

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