YouTube Generates $15 Billion Every Year For Google

As we keep hearing how much do creators make from time to time, Google finally puts an end to all the speculations around how much does its massive video-sharing platform, YouTube earns every year. Hence while the platform gave birth to many of the millionaires, the final digit revolving YouTube's earnings has turned out to $15 Billion (15,000,000,000) annually. Sounds like a lot of zeroes, right?

This is the first time in 15 years (ever since Google bought YouTube for $1.65 Billion in 2006) that the parent company Alphabet has decided to reveal the earnings of YouTube in their fourth-quarter earnings report. Moreover looking at the quarter alone, YouTube has also successfully generated a revenue of $5 Billion in the last three months.

The credit for the revelation of transparent information goes to CEO Sundar Pichai, who was given the responsibility of becoming the chief executive of the entire company at the end of 2019 - right after co-founders Larry Page and Sergey Brin decided to say goodbye to daily operations and now just want to enjoy their share of profits.

Going into the depth of $15 Billion that YouTube generates for Google annually, these numbers still contribute as 10% of Google’s overall revenue. Furthermore, the figures of YouTube's ad business comprises up as one-fifth of Facebook’s size but six times more than Amazon’s Twitch.

With the report, Google also boasted about YouTube Premium’s success with 20 million subscribers who are enjoying the new ad-free YouTube. There are further 2 million subscribers of the platform’s paid TV service as well. The revenue coming from these products are included into “other” category that also includes hardware products like Pixel phone and Google Home speakers amounting to $5.3 billion last quarter.

On the whole, Alphabet made $46 Billion in revenue in the fourth quarter that ended on 31st December 2019 - it’s a 17 percent jump over the last financial year 2018. Among the total figure $10.7 Billion turned out to be the profits.

Google’s search engine remains to be the biggest money churning machine for Alphabet with $27.3 Billion revenue in the last quarter. However, along with YouTube's ad business, there is also one more division of Google that has boosted its financial performance and that is cloud computing with $2.6 Billion revenue in the similar quarter.

Looking at the billion-dollar mark in each category, the investors can pretty much depend on Google for the fact that its business doesn’t solely rely on the search engine. In fact the company is making products like YouTube and Cloud Computing even bigger with every passing year, which is a plus sign for its sustainability.

Google Search did a business of $98.1 Billion in 2019 but the company says it’s just a 15% increase over 2018. YouTube, on the other hand, jumped from $11.2 Billion to $15.5 Billion, summing up as 36.5% increment. But that being stated, investors still believe that Alphabet has missed the revenue targets and therefore the stock was down to more than 4 per cent in after hours trading.

Read next: Android Developers Have Earned $80 Billion so far from the Google Play Store
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