How does YouTube earn

That's how much money Google makes with YouTube

Since Google took over YouTube in 2006, the video platform has been on the rise. Now the Google parent Alphabet has revealed for the first time how much sales the portal generates. Let's take a look at the YouTube numbers together.

In 2006, Google bought YouTube for around $ 1.7 billion. In the meantime, the Google parent Alphabet should of course have covered its expenses long ago.

So far, however, the group had always kept the specific YouTube figures on business development to itself. But now the first quarterly report under the new CEO Sundar Pichai is available with exactly these.

YouTube Numbers: Video Platform Brings Google $ 15 Billion in Sales

According to this, YouTube brought the Alphabet Group a turnover of around 15 billion US dollars last year. That is the equivalent of 13.5 billion euros and - what is even more important - around ten percent of the total Google revenue of 162 billion US dollars.

According to the company's annual report, YouTube revenue from October to December 2019 alone accounted for $ 4.7 billion.

YouTube ad revenue nearly doubled

The YouTube figures from 2017 also show how strong the growth is: At that time, according to Alphabet, revenues were still 8.1 billion US dollars. In 2018 it was at least 11.2 billion US dollars.

That means: In the past two years, the income from the video platform has almost doubled. The fact that Google bought YouTube 14 years ago has now really paid off.

And the current figures do not even include the income from the music streaming service YouTube Music and the paid subscription YouTube Premium. These fall under the unspecified “Other” category in the Google report.

According to Alphabet, both services together should have around 20 million paying customers. In the USA, another two million users are also said to have subscribed to the live TV service YouTube TV.

Despite YouTube figures: Investors are disappointed

As good as it all sounds, investors still reacted disappointed to the annual report. The sales growth was not as high as forecast.

Alphabet's sales rose 17 percent year-on-year to $ 46.1 billion in the fourth quarter of 2019. In retrospect, however, that is the weakest growth in five years. Alphabet cannot score points on the stock market with the current YouTube figures.

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That's how important YouTube is to Google

Nevertheless, the rapid growth in sales shows how important YouTube is for Google and Alphabet.

The entire Alphabet group comes with the advertising revenue to 33.21 billion US dollars. If you look closely at the numbers, you can see that YouTube is responsible for the equivalent of around twelve percent of all advertising revenue.

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