The first targeted advertising on the site came in February 2006 in the form of participatory video ads, which were videos in their own right that offered users the opportunity to view exclusive content by clicking on the ad.[29] The first such ad was for the Fox show Prison Break and solely appeared above videos on Paris Hilton's channel.[29][30] At the time, the channel was operated by Warner Bros. Records and was cited as the first brand channel on the platform.[30] Participatory video ads were designed to link specific promotions to specific channels rather than advertising on the entire platform at once. When the ads were introduced, in August 2006, YouTube CEO Chad Hurley rejected the idea of expanding into areas of advertising seen as less user-friendly at the time, saying, "we think there are better ways for people to engage with brands than forcing them to watch a commercial before seeing content. You could ask anyone on the net if they enjoy that experience and they'd probably say no."[30] However, YouTube began running in-video ads in August 2007, with preroll ads introduced in 2008.[31]
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In October 2014, videos' frame rate limit was increased from 30 to 60, allowing for a smoother and more realistic appearance. It was initially only available with Google Chrome and later expanded to other browsers. 60fps are only available at 720p resolution and above.[159]
In November 2014, YouTube launched a paid subscription service initially named "Music Key", featuring background playback, the integrated ability to download music for offline use, and no advertisement breaks.[160] Almost a year later, in October 2015, it was rebranded to "YouTube Red" and its scope expanded beyond music.[161][162] It was rebranded again in May 2018 to "YouTube Premium", and its availability expanded across countries.[163] Google's other music streaming service Play Music was merged with YouTube Music in May 2020, as the latter is a more recognized brand.[164]
Google did not provide detailed figures for YouTube's running costs, and YouTube's revenues in 2007 were noted as "not material" in a regulatory filing.[315] In June 2008, a Forbes magazine article projected the 2008 revenue at $200 million, noting progress in advertising sales.[316]
Some industry commentators have speculated that YouTube's running costs (specifically the network bandwidth required) might be as high as 5 to 6 million dollars per month,[317] thereby fuelling criticisms that the company, like many Internet startups, did not have a viably implemented business model. Advertisements were launched on the site beginning in March 2006. In April, YouTube started using Google AdSense.[318] YouTube subsequently stopped using AdSense but has resumed in local regions. 2ff7e9595c
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