For the first time, YouTube revealed its income. Since Google was acquired in 2006, YouTube has never once revealed how much revenue. The video sharing platform earned five billion US dollars in three months from advertising revenue.
The report was delivered directly by Alphabet’s CEO, as well as Google’s CEO, Sundar Pichai when describing Alphabet’s quarterly revenue. On an annual basis, YouTube is said to generate 15.15 billion US dollars in 2019. This revenue rose 36.5 percent from 2018 which earned 11.2 billion US dollars.
This figure accounts for 10 percent of Google’s total revenue. The advertising revenue generated by YouTube is almost one fifth of Facebook’s advertising revenue and is six times greater than the Twitch ad, Amazon’s video streaming platform.
As a comparison, Facebook earned 21 billion US dollars in the last three months of 2019, compiled from the New York Times, Tuesday (2/2/2020). On the same occasion, Google also announced the results of a premium subscription scheme available on YouTube from the end of 2019.
YouTube Premium is a new scheme launched by YouTube by offering ad-free content at a subscription fee. Google claims to have more than 20 million subscribers on YouTube Premium who at the same time can enjoy YouTube Music.
Google also said it has two million paid TV service customers. Revenue from this Premium service is separate from YouTube’s income statement above.
Alphabet said revenue from Premium went into the “other” category which earned 5.3 billion US dollars. In addition to withdrawing from subscription schemes, the “other” category also includes the hardware sector, including Google Pixels and Google Home speakers.
Overall, Alphabet’s total revenue from various businesses reached US $ 46 billion in the last quarter of 2019. This figure is up 17 percent from the same period in 2018.
From all lines of business, Google’s search engine is still the biggest revenue field of Alphabet. Google Search contributed revenue of 27.2 billion US dollars in the quarter. Annually, revenue from Google Search reached 98.1 billion US dollars in 2019, up 15 percent from 2018.
In addition, Google also announced revenue from its computing business, Google Cloud, which reached 2.6 billion in the last quarter of 2019. Google’s move to announce YouTube’s revenue for the first time is likely to calm investors.
Because, Google’s revenue slightly missed Wall Street predictions, although Google’s profit was able to exceed predictions. In business, it’s important for Google to convince investors that the company can’t just rely on search engines. That is why, Google participated in announcing revenues from other sectors, such as YouTube and Google Cloud.