YouTube’s subscription and advertising revenue surpassed $50 billion for the first time in four quarters.
Sundar PichaiCEO of YouTube parent company letter and Googlethe company revealed this figure during its third-quarter 2024 earnings call on Tuesday (October 29).
“YouTube TV, NFL Sunday Ticket and YouTube Music Premium are collectively driving subscription growth on the platform,” Pichai told analysts on a conference call.
Alphabet typically does not disclose YouTube subscription revenue in its revenue data because it falls under the “Google Subscriptions, Platforms and Devices” category.
However, the company did report YouTube ad revenue, which was $8.92 billion In the third quarter, up Annual increase of 12.2% and beat analysts’ expectations US$8.89 billioneach StreetAccount.
Revenue growth from Google subscriptions, platforms and devices Annual increase of 27.8% arrive US$10.66 billion during this quarter.
“Our subscription products continue to grow significantly, driven primarily by YouTube TV and YouTube Music Premium, as well as Google One, primarily due to an increase in the number of paid subscribers,” said Alphabet and Google senior vice president and chief financial officer. Anat Ashkenazi Said on the phone.
While YouTube Music is a key component of the platform, Alphabet executives have made clear that their current focus is on transforming YouTube, the No. 1 streamer in the U.S. according to Nielsen, into a competitor to Netflix and television.
“We’re leaning toward multi-view living room experiences, which are new options for creators to organize content into episodes and seasons, similar to traditional television,” Pichai said.
Senior Vice President and Chief Commercial Officer, Google Philip Schindler noted that the company is using artificial intelligence to “dramatically improve” YouTube’s recommendations.
“Powered by Gemini, our large language models have a deeper understanding of video content and audience preferences; therefore, they can recommend more relevant, fresh and personalized content to viewers,” Schindler said.
Schindler said YouTube creators are increasingly making content suitable for the big screen, and that effort is “paying off,” with a growing number of creators making most of their revenue from big-screen views 30% annual increase.
“YouTube TV, NFL Sunday Ticket and YouTube Music Premium collectively drive subscription growth on the platform.”
Sundar Pichai, Alphabet
Alphabet is also focused on live sports — its main competitor in TV streaming NetflixClearly lacking.
“During the Olympics, the Paris 2024 content has concluded 12 billion Views on YouTube. more than 850 million Unique viewers who watched 40 billion minutes of content, 35% On their television screens,” Schindler said.
“YouTube is becoming the premier destination for watching sports.”
“YouTube is becoming the premier destination for watching sports.”
Philipp Schindler, Alphabet
YouTube Shorts – the platform’s response to the surprising popularity of short-form video platforms Tik Tok – continues to close the monetization gap with feature films, Schindler said.
Of the channels uploaded to YouTube each month, 70% Schindler said they are uploading short clips, noting that the company recently announced it would increase the maximum length of short clips from the current 60 seconds to three minutes, which is apparently the “most requested feature” among creators.
Schindler noted that Google experienced a “slight boost” in U.S. election-related ad spending in the third quarter, and “that was more pronounced in YouTube ads.”
Overall, Alphabet’s earnings beat expectations, with revenue US$88.27 billion Revenue for the quarter was $86.3 billion, compared with analysts’ expectations of $86.3 billion.
Operating income rises Annual increase of 33.6% arrive US$28.52 billionoperating profit margin increased by four percentage points 32%. Diluted earnings per share is $2.12beating expectations by $1.85.
Alphabet’s stock price soared 4.4% within minutes of Tuesday’s earnings report, and continued to rise on Wednesday (October 30). As of noon Eastern time, Nasdaq’s stock price rose another 4.5% to around $178.90.global music business
