This is the first report since Sundar Pichai was named as the Alphabet CEO. This is also the first time Google has revealed YouTube’s revenue since it acquired the website in 2006 for $1.65 billion.
According to Google, YouTube generated $15 billion last year while only contributed roughly 10% to all Google revenue. This makes YouTube’s ad business one fifth the size of Facebook’s and more than six times larger than the Amazon-owned Twitch. YouTube has more than 20 million Premium subscribers and more than 2 million subscribers of its paid TV service. Google also made $5.3 billion last quarter that includes Pixel phones and Google Home speakers.
CEO Sundar Pichai wrote in the release, “Our investments in deep computer science, including artificial intelligence, ambient computing, and cloud computing, provide a strong base for continued growth and new opportunities across Alphabet.”
Ruth Porat, the chief financial officer of Alphabet had said the new details give a crystal clear look into the company’s various lines of business. “To provide further insight into our business and the opportunities ahead, we’re now disclosing our revenue on a more granular basis, including for Search, YouTube ads and Cloud,” Porat said.