YouTube’s Revenue Surges by 12.5% Despite TikTok Pressure
Despite the ongoing competitive pressure from TikTok, YouTube, a subsidiary of Alphabet Inc., has reported robust financial results for the third quarter, surpassing Wall Street analyst estimates. The video-sharing platform raked in advertising revenue totaling $7.95 billion, a 12.5% increase compared to the same period last year.
Analysts had projected YouTube’s Q3 ad revenue to be $7.81 billion, according to FactSet. Notably, YouTube exceeded this estimate in both the brand advertising and direct response advertising segments. It’s worth mentioning that a year ago, YouTube failed to meet expert expectations, experiencing a 1.9% decline in revenue.
In its reports, Alphabet discloses only YouTube’s advertising earnings, keeping revenue from YouTube TV, YouTube Premium, and YouTube Music subscriptions, as well as revenue from the exclusive multi-billion-dollar deal for streaming NFL Sunday Ticket games, behind the scenes. This seven-year agreement involves Google paying the National Football League $2.5 billion annually, and throughout this period, the company anticipates a “meaningful profit” from this deal, as stated by Alphabet and Google’s President and Chief Investment Officer (formerly the Chief Financial Officer), Ruth Porat.
In recent years, YouTube has faced stiff competition from the Chinese platform TikTok. To counter this competition, YouTube introduced the YouTube Shorts section, which has gained considerable traction. With 70 billion daily video views and over 2 billion monthly users, according to Alphabet’s CEO Sundar Pichai, the platform is maintaining its relevance and reach. In 2024, Google Podcasts will be phased out, with YouTube Music becoming the primary podcast platform in the company’s ecosystem.
- I'm Martin Harris, a tech writer with extensive experience, contributing to global publications. Trained in Computer Science, I merged my technical know-how with writing, becoming a technology journalist. I've covered diverse topics like AI and consumer electronics, contributing to top tech platforms. I participate in tech events for knowledge updating. Besides writing, I enjoy reading, photography, and aim to clarify technology's complexities to readers.
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