YouTube at 20: From Startup Dream to Global Video Giant

What started as an idea at a dinner party has grown into a media powerhouse. YouTube, the world’s largest video platform, is on the verge of surpassing cable television in paid viewership in the U.S.

Founded in 2005 by PayPal employees Steve Chen, Chad Hurley, and Jawed Karim, YouTube launched on Valentine’s Day.

Just two months later, on April 23, Karim uploaded the site’s first-ever video, the now-iconic Me at the Zoo, which has since amassed 348 million views.

Over the last two decades, YouTube has shattered expectations, drawing over 2.5 billion viewers worldwide in 2023 alone.

“YouTube was created by tech guys who just wanted a place to host videos—like reruns of Janet Jackson’s infamous Super Bowl moment,” said EMarketer analyst Ross Benes. “Now, it’s the biggest digital video platform by time spent and ad revenue. It’s a juggernaut.”

The platform’s paid subscriptions, including YouTube Premium and Music, have reached 100 million users, according to Statista.

Google reports that users now watch over a billion hours of YouTube content on TVs every single day.

“If you told someone 20 years ago that this site filled with home videos and parodies would be a serious threat to networks like Disney, ABC, and CBS, they would’ve laughed,” Benes added. “Yet, here we are.”

The Video Revolution

YouTube’s key innovation was disrupting traditional television without the need for expensive studios or production teams—anyone could create and share content.

From music videos and political ads to DIY tutorials and documentaries, YouTube became the go-to platform for endless content.

“The sheer volume of videos uploaded is like an unstoppable firehose,” Benes said. “People are constantly tuning in.”

Every minute, over 500 hours of video are uploaded, according to Google.

Many analysts point to Google’s acquisition of YouTube for $1.65 billion in 2006 as a turning point.

By combining Google’s expertise in search and advertising with YouTube’s engaged user base, the platform evolved into a financial and cultural powerhouse.

“YouTube was a model for how tech companies could actually make money post-dot-com collapse,” said analyst Rob Enderle. “It showed what a sustainable internet business could look like.”

By refining its ad revenue-sharing model, YouTube turned viral videos into a serious business, rewarding creators who attracted large audiences.

At the same time, it tackled copyright issues and piracy concerns, negotiating deals with studios and rolling out content protection measures.

“The piracy problem isn’t nearly as rampant as it once was,” noted Benes.

The company also addressed concerns over inappropriate content slipping through its recommendation system, especially for children.

YouTube Kids, a dedicated app, was introduced as a safer space, and the platform continually tweaks its algorithm to balance user experience, advertiser needs, and regulatory compliance.

Much of YouTube’s transformation into a polished, global platform is credited to its former CEO Susan Wojcicki, who passed away last year.

“She was incredible at her job,” said Enderle. “She turned YouTube into what it is today.”

A Future Beyond Cable

YouTube is set to surpass all U.S. cable providers in paid subscribers within the next two years, according to analysts.

Competing with traditional streaming services, as well as short-form video platforms like TikTok and Instagram Reels, YouTube has adapted. Its Shorts feature, designed to rival TikTok, now garners more than 70 billion daily views.

“As the original streaming platform, YouTube continues to evolve,” said Mike Proulx, vice president and research director at Forrester. “It’s the standard for long-form user-generated video and has defined the modern content creator.”

While YouTube’s algorithm has long favored established creators, it is once again giving new voices a chance to be discovered.

“YouTube is changing, and I love that,” said longtime creator Robert G, who started uploading in 2009. “It’s a part of me—it’s what I do.”