Alphabet-owned YouTube continues to see growth in subscription and ad revenue. Google announced an increase to 325 million paying users for Google One and YouTube Premium, up from 300 million in the previous quarter. In the fourth quarter, YouTube’s ad revenue rose by 9% to $11.38 billion, slightly below analysts’ expectations. The platform’s total revenue, combining ads and subscriptions, reached $60 billion for the full year, marking a 17% increase from the prior year.
YouTube’s $8 per month premium tier, offering an ad-free experience, is gaining traction, although specific figures were not disclosed. Additionally, YouTube Premium experienced significant growth. Alphabet CEO Sundar Pichai revealed plans to expand subscription options, particularly focusing on the expanding YouTube TV user base. New YouTube TV plans will introduce more choice and flexibility with genre-specific packages.
YouTube Shorts maintained an average of 200 billion daily views in the quarter. Some regions find short-form video ads more lucrative per hour than traditional in-stream ads. Pichai highlighted the increasing popularity of podcasts, with users consuming 700 million hours of podcast content on TV in October.
The platform noted the success of its AI features, with over 1 million channels utilizing AI creation tools. In December, 20 million users engaged with the Gemini-powered content discovery tool. YouTube’s revenue growth reflects its evolving strategies to enhance user experience and diversify its offerings.
Source: TechCrunch