Google announced today that YouTube has exceeded 100 million paid subscribers across YouTube Music and YouTube Premium. This figure marks an increase from the 80 million paid subscribers reported in November 2022.
During the Q4 2023 earnings call earlier this week, Sundar Pichai disclosed that Google’s subscription business, inclusive of YouTube’s paid offerings, now generates over $15 billion annually.
According to Philipp Schindler, the company’s chief business officer, premium users are delivering greater value to its partners.
“YouTube Music and Premium have demonstrated strong performance. Premium users are contributing more value to our partners and YouTube compared to ad-supported users. On average, each new Premium subscription enhances earnings for creators, music, media partners, and YouTube as a whole,” he stated.
The search engine behemoth initially introduced YouTube Music in 2015, coinciding with the launch of a $9.99 per month Red subscription for ad-free viewing, which also granted access to Play Music. In 2018, the Red subscription underwent a rebranding to become YouTube Premium.
Over the last year, YouTube has taken measures against ad blockers, asserting that these tools violate its terms of service. The video streaming platform initiated warnings, informing users that they must disable ad blockers to access videos.
In recent years, the platform has also explored alternative revenue models, such as requesting users to pay for higher-resolution video viewing and presenting multiple unskippable ads.
Simultaneously, the company has introduced features like mini-games and videos with enhanced bitrates to enhance the appeal of the Premium version for users.
YouTube has broadened its Premium subscription service to over 100 countries. In December 2023, the company extended its offering to an additional 10 countries, including Algeria, Cambodia, Ghana, Iraq, Jordan, Kenya, and Senegal.
YouTube plays a significant role in Google’s business, with earnings reaching $9.2 billion in Q4 2023, up from $8 billion for the corresponding period the previous year.
