For several months, YouTube has been doing everything it can to force users to watch ads or upgrade to a paid YouTube Premium subscription. Not only are there more spots, but they are often impossible to miss. In the second half of 2023, Google also started fighting against people using ad-blocking plug-ins. Now it turns out that these efforts have paid off for the company.
Great YouTube results. The ads and premium package worked
Alphabet CEO Sundar Pichai, while announcing the conglomerate’s financial results, admitted that the subscription business recorded $15 billion in annual revenue. The head of the internet giant notes that the segment is “growing strongly” and its revenues have already increased fivefold since 2019.
Pichai also noted that the real driving force was YouTube Premium and YouTube Music in particular. He said they are in “tremendous interest” in more than 100 countries or regions around the world. However, it was not stated how many users currently pay for access to the platforms. However, the increases are also partly responsible for, among others: YouTube TV and Google One services.
The advertising segment on YouTube itself also brought huge revenues. In the last quarter of 2023 alone, the platform generated as much as USD 9.2 billion in revenue from advertising spots, which is an increase of 15.5%. Every year. It is clearly visible that YouTube derives much more from advertising than from Premium subscriptions, even though it tries to encourage the use of its paid service at every step.
Solid growth in ad revenue suggests that YouTube’s numerous efforts to get users to watch more ads are working. Unfortunately, this may mean that YouTube will look for more ways to increase ad viewing or encourage us to buy the Premium package even more.
The total revenue of the entire Alphabet conglomerate exceeded investor expectations, reaching $86.31 billion in the last quarter, an increase of 13.5%. Every year. Earnings per share amounted to $1.64. The company closed the entire year 2023 with revenues of USD 307 billion.
Source: Gazeta
Mabel is a talented author and journalist with a passion for all things technology. As an experienced writer for the 247 News Agency, she has established a reputation for her in-depth reporting and expert analysis on the latest developments in the tech industry.
