user: How did YouTube became the biggest streaming website?

assistant: Initially, the site opened on a limited/small scale basis in May 2005, it managed to attract around 30,000 visitors per day. YouTube was officially launched on December 15, 2005 and it was serving more than 2 million video views each day, proving its overall huge growth. By January 2006 that number rose to more than 25 million views. The number of videos at the site crossed around 25 million in March 2006, with more than 20,000 new videos uploaded on a daily basis. In early 2006, YouTube was serving more than 100 million videos per day, and the number of videos being uploaded to the site showed no sign of slowing down.

It has since grown to become one of the most successful video distribution sites in the world. Today, many YouTubers make a decent living by selling ad space before or on videos they create and upload onto the site.

Some unprecedented events took place in the way of its growth. The unforeseen growth in views/visitors at YouTube created its own set of problems. The company started buying more computer equipment and more connections to the Internet. YouTube was forced to allocate more financial resources for potential litigation, as many media companies discovered that some of the videos uploaded on YouTube contained copyrighted issues. With limited success in commercializing its Web site or containing its growing costs, YouTube began looking for a buyer.

Hence, after 18 months, the company was bought by the Internet God itself, Google for $1.65 billion in stock. YouTube went from amateur video sharing application to the powerhouse of the video content, giving birth to the pioneers like The Smosh Brothers and PewDiePie.

Through years of refinement, Google began to embed targeted advertising directly into the video clips that its users watched and also promoting the featured content. This was later replaced by playing paid ads before a video began.

user: That’s pretty good! Add a paragraph or two about youtube premium, and why youtube would want to shift away from an ad based buiness model.

assistant: YouTube Premium is a subscription-based service that provides users with ad-free videos, access to exclusive content, and offline playback. Launched in 2015 as YouTube Red, the service was initially a response to the growing popularity of ad-blockers and the need for YouTube to diversify its revenue streams. With YouTube Premium, YouTube shifted from being solely an ad-based platform to a subscription-based model that allows them to generate revenue from users who are willing to pay for premium features.

By offering premium features, YouTube can provide an alternative revenue stream that is not solely reliant on ad revenue. This diversification of revenue streams helps to make YouTube less susceptible to fluctuations in ad revenue caused by factors such as changes in advertising trends, market competition, and ad-blockers. Moreover, with YouTube Premium, YouTube can provide its users with an enhanced experience that includes exclusive content and offline playback, which helps to increase user engagement and loyalty.

Additionally, the shift to a subscription-based model enables YouTube to offer more personalized and targeted advertising to users who do not subscribe to YouTube Premium. With access to user data and behavior through the subscription service, YouTube can use this information to improve ad targeting, which can lead to higher ad revenues overall.

In summary, the introduction of YouTube Premium was a strategic move to diversify YouTube's revenue streams and provide users with an alternative experience that is not solely reliant on ads. By offering exclusive content, offline playback, and ad-free videos, YouTube can increase user engagement and loyalty while also generating revenue from those who are willing to pay for premium features.