Now, creators know how much money YouTube makes and they want more from it.
Now we know how much Google makes from YouTube commercials.Since acquiring YouTube for more than a decade, Google is finally giving investors some information about how much money the video platform makes: a whopping $15bn ads alone.
Google picked up over $15 billion from YouTube ads in 2019, the company disclosed This figure, almost 10 percent of Alphabet's total revenue, does not include other video platform revenue sources, including subscriptions.
Google disclosed the numbers for the first ahead of time of Alphabet's fourth-quarter earnings call, along with revenues for its growing cloud business.
Read More: Jio launched wifi calling service, It Supports More than 150 Mobile Devices: Check it's benefits and how to enable it.However, it's not $15bn really. During an earnings call on Monday afternoon, Alphabet CFO Ruth Porat told investors that YouTube pays the majority of that advertising revenue to its creators. Although Porat wouldn't say how much of the $15 billion goes to its content makers, she has specified that those payouts belong to the "content acquisition" cost of YouTube, which runs at about $8.5 billion.
For people trying to make a living on YouTube, there are many who believe they don't see enough of the $8.5 billion. Top creators tend to earn the most ad revenue from higher rates — because their content is advertiser-friendly — because they produce a large number of views. Other advertising revenue then trickles down to thousands upon thousands of creators belonging to the Partner Program at YouTube.
"I am delighted with the ongoing progress we have made in searching and developing two of our new growth areas — YouTube, now at $15 billion in annual ad revenue, and Cloud, now at $10 billion in revenue," said CEO Sundar Pichai in a statement.
The latest report, which included revenue figures from 2017, shows how fast the ad business of YouTube has risen, with ad revenue almost doubling since 2017 when the video platform took $8.1 billion. In 2018 the ad revenue was $11.1 billion.
Google has so far declined to split the revenue from YouTube, which has been a source of much speculation.
Pichai also sheds some light on how the subscription business at YouTube is doing. The company now has more than 20 million YouTube Premium and YouTube Music subscribers and 2 million YouTube TV subscribers. Overall, the non-advertising revenue from YouTube, which includes subscriptions and commerce, amounts to $3bn.
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