YouTube stars, including Canadian who got kicked in head, making money with help from U.S. company
Published Tuesday, April 22, 2014 8:37PM EDT
Last Updated Wednesday, April 23, 2014 4:44PM EDT
Eleven seconds and a bit of pain may make one Regina man a lot of money. Jared Frank was recently travelling in Peru when he tried to take a selfie while a train passed behind him. Frank ended up taking a boot to the head. After the potential knock-out, one of the first things Frank says is, “I think I got that on film.”
He uploaded it to YouTube and within days the video had more than 24 million views. But Frank isn’t going to be making the money alone. Very quickly after posting the video, he received a lot of offers, but none may be more lucrative than one from Jukin Media, a California-based company that manages and represents YouTube and viral video stars.
“We find clips before they go viral,” says Andrew Barrett, director of marketing for Jukin Media, to Kevin Newman Live. “Our CEO and team can look at a clip and instantly know what will happen…We look for videos with a beginning, middle and end.”
Barrett says in 11 seconds Frank captured a full story with the end being what he said.
If you have post a good video online, Jukin will often reach out and offer you a contract. There are two options. First you can opt for the straight video buyout where Jukin may pay a certain amount of money to own the video. Barrett says a lot of people are quite happy to take a couple hundred bucks for their cat video and be done with it. There is also a revenue share option. If a person decides to sign with Jukin, they will receive more money per click than the traditional YouTube route where people receive money from the ads that run before videos. As Google owns YouTube, the Internet giant is responsible for the ads.
People are constantly sending videos to JukinVideo.com and that is also where media outlets can go to find content
“There was obvious need for a better process by which user-generated videos were licensed for media use,” says Jukin’s CEO Jonathan Skogmo to Forbes. “Video owners didn’t realize they could be earning money from their videos and TV producers and brands were spending too much time and resources trying to discover, source and clear this type of content. So we set out to fill this giant void in the marketplace.”
Jukin's clients also make money from working with companies like Subaru, Pizza Hut and Oscar Meyer to develop ads from viral content.
There aren’t many companies in the space, but with Disney investing $1 billion in Maker Studios – the No. 1 producer and distributer of online video – people seem to think there is a lot of growth in an already valuable industry.
“We’re seeing an enormous increase in the use of viral videos in different kinds of media,” says Skogmo. “When I started in this business, TV clips shows (like America’s Funniest Home videos) were the only ones using online video for commercial purposes. Today viral videos are shown in news broadcasts, daytime talk shows, on late night, in sports coverage, reality shows, and of course, digital publishers.
Another advantage for clients working with Jukin is they have connections with all of the major TV networks and when videos are played on TV more people go to their computers to watch them online. TV stations, such as CTV, may pay to license a video for broadcast use. In this case Jukin and the creator make the money.
Tomorrow is the ninth anniversary of the first video being uploaded to YouTube. A lot has changed with eliminating barriers to entry in the entertainment industry. Hard to believe a short video of a guy standing in front of an elephant would change so much.
As for Frank, he reportedly said he may make as much as $250,000 from the deal, but Barrett says the range of potential earnings is very large and he can’t discuss specifics. He adds because Franks’ video is popular “we are confident it will generate substantial revenue for the client.”