YouTube shows revenue for the first time: $ 15.1 billion in 2019
That includes $4.7 billion in the fourth quarter.
For the first time, Google on Monday revealed how big the YouTube ad machine is. The company said that in fiscal 2019, revenue from advertising on YouTube was $ 15.1 billion, including $ 4.7 billion in the fourth quarter.
Google disclosed the figures in its quarterly earnings report, which also included fiscal 2019. So far, it and parent company Alphabet have been adding up YouTube's revenue with Google. "To get a better understanding of our business and future opportunities, we are now disclosing information about our revenue in more detail, including on search, advertising on YouTube and in the cloud," said Alphabet chief financial officer Ruth Porat.
On Monday, Google and Alphabet CEO Sundar Pichai told analysts about the company's quarterly earnings report that Its YouTube streaming TV package now has more than two million subscribers, while YouTube Music and YouTube Premium now have more than 20 million paid subscribers. The division's subscription revenue is now $ 3 billion a year, the Executive said.
Over the phone, Porat said the company sees YouTube as a "significant ongoing opportunity" with both direct advertisers and brand advertising campaigns. The CFO also warned that the company is looking to expand its subscription business, which carries higher acquisition costs.
According to recently published data, there is a huge growth on YouTube. In fiscal 2017, the platform, led by CEO Susan Wojcicki, generated $ 8.15 billion in ad revenue, followed by $ 201.18 billion in 2018. In other words, YouTube ad revenue has almost doubled in the past two years. Google said YouTube generated revenue of $ 3.6 billion in the 4th quarter of 2018.
The disclosure shows how big YouTube's business is. The ad-supported video site, which was founded in 2005 and sold to Google in 2006 for $ 1.65 billion, has long been considered one of Google's top jewels with a huge share of the ad-supported video streaming market. Netflix, by comparison, generated $ 20.1 billion in revenue in fiscal 2019, almost entirely from subscriptions.
Alphabet also received revenue from its Google Cloud division for the first time, reporting that the division generated $ 8.9 billion in revenue last year.
Overall, Alphabet's revenue reached $ 161.8 billion in the fiscal year 2019, including $ 46.1 billion in Q4.