A new report from Ampere Analysis demonstrates the significance of YouTube in the media market.
Ampere says that with a unique business model that places advertising as its main source of revenue, the platform is rarely compared to TV, however its investment in content sits alongside the major studios and VOD players.
While YouTube’s content investment differs from that of traditional studios, its total expenditure will be the third largest worldwide this year for the fourth consecutive year, when taking into account sports rights spend. This puts the Alphabet business second behind Disney.
However, unlike the SVOD platforms, YouTube’s main source of revenue is advertising, not subscription fees. YouTube’s advertising revenue alone, forecasted at $35 billion in 2024, exceeds Disney+ and Amazon Prime Video’s total earnings and falls just shy of Netflix’s total revenue.
Jaanika Juntson, Senior Analyst at Ampere Analysis says: “Despite limited re-licensing opportunities on other platforms, YouTube continues to invest significantly in content through revenue sharing with content creators and has secured the second highest spot for non-sports content spend globally. YouTube’s unique business model sets the platform apart in the media market, yet it plays a key role in the entertainment sector.”
YouTube is the number one platform for online video viewing globally and its advertising revenue is driven by its large user base. 83% of all respondents in the Ampere Media – Consumer survey were monthly active users of the platform in Q1 2024, ahead of monthly active video viewers for Netflix at 57% and Instagram at 43%.
