The American video sharing platform Google was founded in Feb. 2005 and was acquired by Google in 2006. Since then, the company has not disclosed its revenue. Surprisingly, Alphabet, the parent company of the search engine giant Google now reveals the revenue of YouTube for 2019.
How Much Money Does YouTube Make?
After 15 years since the video sharing platform, YouTube was introduced to the public, this is the first time that Alphabet disclosed its revenue. The news was recently delivered by Alphabet CEO Sundar Pichai, who recently took over the position of the whole company. The announcement of YouTube's revenues during Google's fourth quarter earnings call for 2019.
On a yearly basis, ads on YouTube provided the company $15.15 billion for the 2019 fiscal year. It makes up around 10 percent of the entire company's overall revenue. In the fourth quarter of 2019 alone, YouTube made $4.72 billion.
The report does not come with the nonadvertising revenue of the video sharing platform. Nonadvertising revenue includes subscription on YouTube TV. These figures of YouTube's ad business is almost one-fifth of the size of the social media giant Facebook and over six times bigger than Twitch owned by Amazon.
The nonadvertising revenue of YouTube, according to Google CFO Ruth Porat, amounts to $3 billion in the fourth quarter of 2019. The CFO claims that most of the ad revenue of the company's video sharing platform foes to the content creators. Unfortunately, the company or its executives do not reveal the percentage of the revenue that goes to the creators.
Other Details
According to Google, YouTube has over 20 million subscribers on its Premium and Music Premium offerings. It also discloses that the video sharing platform has more than 2 million subscribers on its YouTube TV service. Google's parent company, however, claims that the revenues from those products are included in the Other category.
The company's Other category includes Google Home speakers and Google Pixel smartphones. Because of this, it isn't very easy to measure the specific performance of each product, which makes around $5.3 billion in the fourth quarter of 2019.
Google Cloud
During the earnings call, Google also a key growth area in its portfolio, which is Google Cloud. In this particular segment, the company's cloud service is trailing behind Microsoft Azure and Amazon Web Services. Surprisingly, it reported almost $9 billion for its whole year sales.
Based on the figures, Google Cloud earned less than what Amazon Web Services earned in the previous quarter alone.
