Google revealed 4th quarter earnings (nearly $5 billion in ad revenue) from YouTube as a part of parent company Alphabet. YouTube contributed to almost Google’s overall revenue by 10% in last year. Google says YouTube generated $15.1 billion last year. As per the Google most of money goes to creators. This is the first time YouTube revealed the ads revenue of YouTube and its contribution in search giant bottom line.

YouTube Advertising & YouTube Subscription Business

According to google on YouTube premium services (ad-free YouTube & music premium offerings) there are 20 million subscribers. YouTube generated $3 billion in 2019 on the top of $15.1 billion, according to google. There are 2 million YouTube Subscribers on paid TV.

As overall revenue missed by Wall Street expectation the Google stock price hits 5% after trading partly. Each year YouTube earnings rose by 36%. As per the Chief Financial Officer of Google “we pay most of our revenue to creators”.

Sundar Pichai, Alphabet’s newly appointed CEO, who took over for co-founder Larry Page: “We’re pleased with YouTube’s growth in advertising and subscriptions”

YouTube is competing with major digital players like Amazon, Hulu and Facebook. It’s becoming important part Google Ads business.  Google bought the website in 2006 for $1.6 billion. After 15 years its first time Google owned platform (YouTube Ads Revenue) revealed the earnings.

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