Sign in or Register

Already a member?

Sign in

Or sign in with your account on:

Not a member yet?


Vidcon 2014: A Look at the Heart of the Rapidly-Growing YouTube Industry

By  +Follow July 2, 2014 4:07AM
Tickers Mentioned:

VidCon 2014, YouTube, Kian Lawley, Maker Studio, Fullscreen, video sharing, online video industry, advertising on YouTube

“Is that a Beatle?” joked a mom as screams from already exuberant teenage girls reached a peak as a new star approached a lengthy meet-n-greet line. You’d think. But this particular uproar, one of many collective shrieking sessions that often led to hundreds, if not thousands, of teenagers collectively swooning, was caused by YouTuber Kian Lawley.

Wait, who?

A New Generation of Stars

That was my question which was quickly answered by two 15-year-old girls in line next to me. Kian Lawley is 1/7 of the group of the collaborative group o2l, or Our2ndLife. What Youtubers call a “Collab Channel” is a channel that has multiple people running it. o2l is run by 7 boys that met making videos on YouTube (GOOG) , and now produce them together. And just one of them alone amassed a Justin Bieber level frenzy along with a huge line.

Anaheim is undeniably a place for lines. But the home of Disney had a different popular yet line-heavy attraction drawing in crowds this past weekend, Vidcon. Lines came in many different forms. Lines to meet or take a photo with your favorite YouTube stars, lines to get into panels, lines formed outside by YouTubers holding impromptu photo ops…

But, often, a long wait is the sign of a good reward. And clearly, fans thought the wait was worth it. Sure there were tears. When meet-in-greet lines were cut off by security because they went over capacity, particularly avid fans cried and complained about their five hour flights and six hour waits all for the sake of meeting their favorite YouTuber gone to waste.

But, regardless of some disappointments, most fans were amped, running around the convention halls, following the excited screams, hoping to get a glimpse of their favorite star or, even better, a selfie. Measuring in terms of insane fangirling, Vidcon was clearly a hit.

A Rapidly-Growing Convention for a Rapidly-Growing Industry

So what exactly is Vidcon? Vidcon is self-identified as the world’s premier gathering of people who make and are fans of online video. The first Vidcon took place in 2010, founded by “Vlogbrothers” Hank and John Green. John Green has been increasingly in the public eye. Along with being a YouTube Creator, his bestselling novel, The Fault in Our Stars, was just adapted for the big screen and met with rave reviews and box office success.

Vidcon itself has also become increasingly mainstream. Back in 2010 when the Green brothers first Vidcon hosted less than 1500 people. An estimated 20,000 people attended this year’s convention. Since its conception, Vidcon has exploded, keeping pace with an equally fast-growing industry.

The popularity of YouTube is no secret. More than 1 billion different users and over 6 billion hours of video are watched every month on YouTube. Mega hits regularly reach hundreds of millions of views. Gangnam Style by K-Pop singer Psy, the most viewed viral video in the world, has over 2 billion views.

Most of the people at Vidcon were fans, but there was also a fair share of industry professionals, creators, and wannabe creators. In the exhibitor hall you could find MCNs (Multi-channel-networks), start-ups, and seemingly unrelated brands, such as Kia Motors, Taco Bell, and HGTV (Home and Garden Television).

Why? There’s money here.

The Future of Video Content, and its Profits, is at VidCon

A large presence was occupied by MCNs. Multi Channel Networks offer creators funding, cross-promotion, talent-management, etc. in exchange for a percentage of ad revenue. Maker Studios, was just purchased by Disney (DIS) for $500 million dollars, and its competitor Fullscreen remains one of the largest independent networks in the business.

“(Fullscreen) is not just in the YouTube industry but the spheres of influence industry,” said the Director of Talent Operations at Fullscreen, Phil Ranta. “People who are influential on digital properties generally have the same type of audiences, engaged, lean-in, and clickers. But nobody really tried to go in and crack the code until a few years ago”

Many more mainstream brands are recognizing the power YouTube has to upset traditional forms of media and seeing it as an alternative, for both content production and advertising. They are also recognizing YouTube audiences in general as a demographic fit for their products.

Biggest brands have tried to get into YouTube before, but most of them haven’t had much luck. The problem many brands have had on YouTube so far is not catering to their audience. YouTube users will only watch what they want to watch. Successful companies have taken a different approach.

“Instead of trying to change audience behavior they embraced audience behavior” said Ranta, “On YouTube it’s all about forming sub cultures so the audience is going to tell you what they want.”

First Rule of Online Video: Don’t Underestimate the Power of the Cat Video

When most people think of YouTube, they think of silly, cute cat videos. Friskies, the Cat food brand, has taken that to a whole new level. Friskies’s YouTube channel is pretty successful too. This channel produces content that effectively advertises for their product, but isn’t a television commercial. Viewers actually choose to watch their content, because it’s entertaining. Friskies even had a presence at the celebrity photo ops with their new face of their brand, Internet sensation and “celebrity cat”, Grumpy Cat.

Another “celebrity cat” that has appeared in Friskies YouTube videos is Nala Cat, who got her start on Instagram. Grumpy Cat herself started out on Reddit, and then became an extremely popular meme. On June 11, 2014, Lifetime announced that Grumpy Cat will star in a movie entitled “Grumpy Cat’s Worst Christmas Ever”, to be released this holiday season.

What these cats, and many people in the industry have that makes them so successful is cross platform integration. Many YouTubers, such as comedic duo Smosh, have a website, songs on iTunes, merchandise and an app.

“From the time I met the guys,” said Barry Blumberg, president of Smosh, “we always had a belief that a business built on the back of a single partner was a dangerous place to be, so we always wanted to have multiple revenue streams.”

YouTube: A Platform to be Loved by Creator and Advertiser Alike

Creators do make money from ads on YouTube, with a 60/40 split. Although YouTube is the only social network that shares revenue with creators, most still look to make money in other places as well and broaden their presence in other forms of media. YouTube itself used Vidcon to announce several new features. These features include a virtual tip jar for creators, fan translated subtitles and mobile creator apps.

The online video production industry has undoubtedly been growing. With the further monetization of the industry and the increasing fame of its creators, Vidcon and the YouTube industry in general is expected to continue to grow in terms of money, popularity and influence in upcoming years. 


DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions.

Liked What You Read? Join Equities.com as a contributor and get eyeballs on your content FOR FREE!

Results for goog
Options/stocks Gains
4 Mar 15 15:32:21
$goog $googl $xon exploded as we posted last week, institutionals entry!
Billy Kaos
4 Mar 15 15:31:20
Way cool $goog apps features: (Bet #Hilllary uses the Unsend button) http://t.co/i2LSYBDLHD
4 Mar 15 15:26:54
uranium-pinto-beans: $GOOGL $GOOG a little over a month ago: uranium-pinto-beans http://t.co/V52ANFKoml
Perfor Mance
4 Mar 15 15:01:44
Option Millionaires: uranium-pinto-beans: $GOOGL $GOOG a little over a month ago http://t.co/rw0PVnjr0P
Aaron Chin
4 Mar 15 14:57:52
RT @TweakTown: Mark Zuckerberg says @Facebook doesn't plan on developing a car $FB, $AAPL, $GOOG http://t.co/0vE8XivLKc http://t.co/UaMY0xL…
4 Mar 15 14:57:16
Mark Zuckerberg says @Facebook doesn't plan on developing a car $FB, $AAPL, $GOOG http://t.co/0vE8XivLKc http://t.co/UaMY0xLVPj
Cameron Wilmot
4 Mar 15 14:57:07
Mark Zuckerberg says @Facebook doesn't plan on developing a car $FB, $AAPL, $GOOG http://t.co/TYFFU426jO http://t.co/G6475sART0
BTC Poker
4 Mar 15 14:55:48
Google and Wal-Mart part ways over local shopping ads: http://t.co/Tvdpfu3bxR $GOOG $WMT http://t.co/fM7jlA2ZB6
4 Mar 15 14:53:31
@optionmonster Probably someone in Congress was front running the news since they have immunity. This has happened before $GOOG $MSFT
Stock Hobbit
4 Mar 15 14:47:07
Logging in now to live stock chat http://t.co/ndv5bWOOj4 $GOOG $AAPL $FB $EBAY #options #stocks #daytrading http://t.co/HgMYsaVB5N
4 Mar 15 14:46:09
Eye of the tiger, baby! $GOOG $PCLN $TWTR $FB $AAPL $EBAY $GM $DUST $BABA http://t.co/JUFJoVvAWo http://t.co/F532CdiYqA
4 Mar 15 14:43:00
$GOOGL $GOOG a little over a month ago when analysts were downgrading the stock u knew the bottom was in http://t.co/iHLHcWVwuw
4 Mar 15 14:42:09
Zuckerberg: Don’t expect a Facebook car http://t.co/UyyQSG6CA2. #duh $fb $goog $tsla
4 Mar 15 14:37:05
What will the $DOW do tomorrow? http://t.co/RGFWb0kA5h $GOOG $AAPL $FB $EBAY #options #stocks #daytrading http://t.co/hfwm7T26lQ
4 Mar 15 14:37:02
$GOOG: How Google's Project Nova could upend the wireless industry: http://t.co/9fitsSEPye
James DiPlata
4 Mar 15 14:36:11
Rosner Stocks
4 Mar 15 14:32:13
Stocks Trending Now: http://t.co/0kBSoPqJ6L $ADMD $BAA $CAT $UVXY $GOOG $AMBA $QDF $NFLX $XOP $PM $PFF $XLY ~
Stock Hobbit
4 Mar 15 14:31:06
Find active and helpful professional daytraders stock traders here http://t.co/ndv5bWOOj4 $GOOG $AAPL $QQQ http://t.co/N51J47iMba
4 Mar 15 14:27:11
True balls. $AAPL $GOOG $INTC $MTW $CAT $X $C $CSCO $T $SE $WU $MU $WBA http://t.co/8mR4s08jCl http://t.co/KqLJySik9D
4 Mar 15 14:19:06
$VIX $USD major indices $GOOG $PCLN $TWTR $FB $AAPL $EBAY $GM $DUST $BABA http://t.co/JUFJoVvAWo http://t.co/hROfXyHPHR
Rosner Stocks
4 Mar 15 14:18:47
Stocks Trending Now: http://t.co/0kBSoP98fd $GDXJ $OCAT $GOOG $RCHA $BTZO $FBMPX $PG $BBY $NWBO $PJP $BTZO $WMIH ~
WSJ Risk&Compliance
4 Mar 15 14:11:54
RT @WSJ: Google and Wal-Mart part ways over local shopping ads: http://t.co/sXg0oeSQEk $GOOG $WMT http://t.co/i3jK6FpoYo
4 Mar 15 14:07:00
#Stocks to watch from The Value Line Investment Survey: $CVX $V $AMZN $GOOG $DECK $ALGN $QLGC $JDSU $MO $MA $XRX $NWL http://t.co/cVIPfYMNEU
4 Mar 15 14:04:06
#OptionsTraining Video: #Payoff #Diagrams http://t.co/nuLmohA3zT $GOOG $GOOGL $TSLS $TQQQ $XLV $XNRG $NKE $DIA http://t.co/1eQFSEMPd3
Clayton R.
4 Mar 15 14:03:17
$GOOG http://t.co/zzGEvirsQD With 20.2 Million PS4's Sold, Sony Is Winning Because Of Microsoft's Mistakes http://t.co/7JBBXICHdu
Sue Calvery
4 Mar 15 14:03:09
From Dead-End Job to Uber Billionaire: Meet Ryan Graves http://t.co/ROOGhNwFg6 via @daily_finance $GE $GOOG
AAPL Stock Alerts
4 Mar 15 14:00:04
Do Apple's New iPhones Initiate Peak Android? http://t.co/Ylq9FLSMe1 $BBRY $GOOG $MSFT $GOOGL $AAPL
4 Mar 15 13:57:05
Free Video Tutorial #psychology of #trading http://t.co/th4YrUzta4 $TLT $TNA $QQQ $SPY $GPRO $GOOG $AAPL http://t.co/slnW2hgtJZ
4 Mar 15 13:50:23
Shares of Apple as priced in shares of Google. $AAPL $GOOG http://t.co/b5TeiFjNlT
SiAlpha™ Investing
4 Mar 15 13:50:17
@Google has 40,000 employees in 40 countries and still dominates online search, with a 65% share of the global market. $GOOG #fact
Michael Stich
4 Mar 15 13:44:24
RT @bryang_KR: #kantarretailevents Whitfield: 63% of US CE purchases start online...almost half of those start on $AMZN. $GOOG only 10%.
4 Mar 15 13:43:52
Access curated tweets- high relevancy, less spam- US Tech Giants http://t.co/kdZSg01UFl $MSFT $TWTR $AAPL $FB $GOOG
Stefan Cheplick
4 Mar 15 13:30:42
RT @ppearlman: im with cheplick on this. google loon has silly potential... http://t.co/zOU9g8XEao $GOOGL $GOOG via @scheplick
4 Mar 15 13:30:07
Your DOWN prediction for $GOOG on 2/17/2015 was INCORRECT. The price change was: 4.49%, @N/A
Tim Madsen
4 Mar 15 13:29:44
Google Inc. (GOOG) price at close, March 04, 2015, is 573.37. $GOOG
4 Mar 15 13:26:19
RT @WSJ: Google and Wal-Mart part ways over local shopping ads: http://t.co/sXg0oeSQEk $GOOG $WMT http://t.co/i3jK6FpoYo
4 Mar 15 13:25:50
rt @TweakTown 'FREAK attack' leaves Apple, @Android users vulnerable to attack #infosec $GOOG, $AAPL http://t.co/vK8uq0Q3ox
Guru Algo Trading
4 Mar 15 13:25:18
RT Why $BABA is a JUNK stock $QQQ $AAPL $GOOG http://t.co/ECa7UUs0H7 …
Money Maker #L1C4
4 Mar 15 13:24:35
RT @ACInvestorBlog: $BBRY BlackBerry Could 'Double Easily' If It Continues Down The Right Path http://t.co/ZJPL7D0q2H $AAPL $GOOG
Nerd Criollo
4 Mar 15 13:21:55
Hoy #Google Inc. $GOOG cerró a $573.37.
Bertha Coombs
4 Mar 15 13:20:12
@j2lovesfriday $AMZN's also a rising entertainment player, as are $AAPL & $GOOG, which are also moving into $TSLA's world. Tech lines blur.
Robert Lesnicki
4 Mar 15 13:20:10
"@ppearlman im with cheplick on this. google loon has silly potential... http://t.co/0TsHz6LQFT $GOOGL $GOOG via @scheplick"
4 Mar 15 13:18:42
$GOOG took some $T market share in Kansas City...I'd be surprised if someone doesnt say "disruptor(s)" re: this http://t.co/QAOCcP7tfQ
Phil Pearlman
4 Mar 15 13:18:06
im with cheplick on this. google loon has silly potential... http://t.co/zOU9g8XEao $GOOGL $GOOG via @scheplick
4 Mar 15 13:17:07
RT @sjm4k: The #smartwatch market is dead, but #Apple can #save it http://t.co/NrQFuClHAa #tech #wearables $AAPL $GOOG $GOOGL #Android
Arthur Dalin
4 Mar 15 13:16:28
RT @WSJ: Google and Wal-Mart part ways over local shopping ads: http://t.co/sXg0oeSQEk $GOOG $WMT http://t.co/i3jK6FpoYo
4 Mar 15 13:16:21
RT @sjm4k: How #Cards Are Quietly Transforming The #Web http://t.co/ZShPFb2MX3 #tech #innovation $FB $GOOG $GOOGL $TWTR
4 Mar 15 13:08:08
After #NetNeutrality decision by @FCC, Google Goes Wireless http://t.co/ylhjErEt42 $GOOG
Forex  News Insider.
4 Mar 15 13:02:26
Alibaba +4.6%, Yahoo +2.6%; Ma reportedly mulled Yahoo acquisition http://t.co/Q6MF688vSy $BABA $YHOO $AMZN $GOOG
cooptino bay ay
4 Mar 15 13:01:41
@CNBCFastMoney #askfast why is oculus $fb touted whereas $goog cardboard is 7x cheaper and for iOS & android . + Undervalued non x projects?
By  +Follow July 2, 2014 4:07AM



blog comments powered by Disqus

About us

Equities.com is the most advanced interactive online social ecosystem for the financial industry, serving as a resource center and next-generation communication platform that connects self-directed investors with public issuers, market experts, and professional service providers and vendors. Registered members can leverage our exclusive proprietary research tools such as the Small-Cap Stars, which outperformed 90% of all small-cap mutual funds, and robust do-it-yourself E.V.A. research reports. The Equities.com Issuer Dashboard is the ideal tool to communicate and manage investor awareness campaigns to the investment community, as well as to access valuable resources to help your company grow.

Market Data powered by QuoteMedia.
Copyright © QuoteMedia. Data delayed 15 minutes unless otherwise indicated. Terms of Use.