Financial Contribution of YouTube into Alphabet RevenueFinancial Contribution of YouTube into Alphabet Revenue

Financial Contribution of YouTube into Alphabet Revenue- YouTube is the world’s biggest and most popular online video-sharing platform. Until 2021, this YouTube has generated billion US Dollars of Revenue to its parent company and investors. By the way, that’s massive contribution into google revenue. Millions of video creators in this world make the content into YouTube Platforms. They also can generate the revenue when they meet the requirement as YouTube Partners. From time to time, with this mechanism, many people are interested in creating the video-based content in YouTube.  Furthermore, many unique with different topics videos can be found in YouTube. Some companies also have an account in YouTube to communicate and interact with their customers. With many videos in YouTube, it can attract many investors, company, and people advertise with YouTube as one of the most effective manners to promote their products and services.

 Financial Contribution of YouTube into Alphabet Revenue- Youtube

Historically, the journey of YouTube Started on February 14, 2005. Basically, YouTube was design by Steve Chen, Chad Hurley, and Jawed Karim. Hurley studied design at the Indiana University of Pennsylvania.  Meanwhile, Chen and Karim studied computer science at the University of Illinois at Urbana–Champaign. But, in October 2006, Alphabet Inc (Google) bought YouTube with investment cost around $1.65 billion. To date, Based on Datanyze, in Software in Online Video Platforms, YouTube has market share around 75%. They still become the leader in these industries. The main competitors of Youtube in these industries are Vimeo, Wistia, JW Player, Flowplayer platform, and others.

YouTube and the Financial Contribution into Alphabet Inc / Google

After more than 25 years of its acquisition, YouTube has transformed into online video sharing platform with 2.5 monthly billion of users in 2022 based on Statista. Along with Facebook, Instagram, WhatsApp, WeChat, TikTok, this video sharing platform still becomes the favorable users in creating, designing, and looking the content.

The increasing popularity of YouTube with increasing users and consumers also attract many companies to advertise in this platform. It affects the financial performance of YouTube. Billions of Dollars can be generated to its Parent company, Alphabet.

Financial Contribution of YouTube into Alphabet Revenue- Contribution of YouTube into Alphabet

Based on the Annual Report of Alphabet in 2021, Financial Contribution of YouTube into Alphabet Revenue around 9%-11%. It can be looked at the picture. Historically, in 2019, the YouTube Ads revenue around 15.1 billion US Dollars. In 2020, it increased into 19 billion US Dollars and in 2021, it became 28 billion US Dollars.

Meanwhile, the consolidated revenue of alphabet in 2019 reached 161 billion US Dollars, It grew into 182 billion US Dollars in 2020, and 257 billion US Dollars in 2021. Overall, the growth of YouTube ads has in line with Google revenue. They have positive correlation in revenue variables. Relatively, until 2021, YouTube still become the main financial contributor of Alphabet’s revenue.   

Bibliography of Financial Contribution of YouTube into Alphabet Revenue

Statista. 2022. .Most popular social networks worldwide as of January 2023, ranked by number of monthly active users accessed via https://www.statista.com/statistics/272014/global-social-networks-ranked-by-number-of-users/ on February 13th, 2023.

Datanyze. 2022. YouTube. Accessed via https://www.datanyze.com/market-share/online-video–12/youtube-market-share on February 19th, 2023.

Alphabet Inc. 2023. Annual Report 2021. Accessed via https://abc.xyz/investor/  on February 19th, 2023.

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