YouTube, Google Subscription Services Had $15 Billion Revenue in 2023
Having a trusted partner for accurate, unbiased, indisputable data and real-time insights is no longer a nice-to-have, it’s a must-have. It wouldn’t be long before Google scooped up YouTube, acquiring the startup for $1.65 billion in late 2006. What was considered at the time to be a huge reach for a startup which had shown no capability or interest in generating profit is now recognized as one of the smartest acquisitions of the past two decades. Mid-October 2013 saw the announcement of Google’s overall earnings for the third quarter of 2013, which came in at $14.89 billion, up 12% from the previous quarter. Of this amount, $10.8 billion came from Google’s Internet business due to a rise in the number of user clicks on adverts. YouTube was ranked ninth in PC World Magazine’s list of the Top 10 Best Products of 2006.
- Users wishing to post a video discussing, inspired by, or related to another user’s video can make a “video response”.
- They shared an office, from which they delegated tasks to newfound hoards of employees that came from Google.
- It was launched to the public in December of the same year, where it quickly grew to reach over eight million video views per day.
- Available content includes video clips, TV show clips, music videos, short and documentary films, audio recordings, movie trailers, live streams, and other content such as video blogging, short original videos, and educational videos.
- Since the fourth quarter of 2015, Alphabet Inc., Google’s parent company, is denoted by these ticker symbols.
The company rose like a rocket ship after its founding in 2005, and was bought by Google 18 months later. Under Google, YouTube went from being a repository of amateur video to a powerhouse of original content, not to mention a launching pad for its own new brand of superstar, like PewDiePie and the Smosh Brothers. The corporation recorded $10.492 billion in total revenue from advertisements for the 2006 fiscal year, but just $112 million in revenues from licensing and other sources. 2011 saw Google’s advertising programs provide 96% of the company’s revenue. Per the firm’s 13F filing for the period ended June 30, 2021, FMR LLC owned 13.1 million class A shares of Alphabet, or 4.4% of all outstanding class A shares. Financial planning, wealth management, retirement choices, brokerage, and investment management are all provided by FMR, one of the biggest financial services firms in the country.
Did you know that YouTube was initially conceptualized as a video dating site? However, it became a home video-sharing platform, attracting over 30,000 site visits per day during its limited beta testing in May 2005. It was launched to the public in December of the same year, where it quickly grew to reach over eight million video views per day. Levine described it as a “landmark, first-of-kind” deal, one that would enable YouTube to host user-generated videos that contained music owned by Warner for a share of the ad revenue. Shortly after the site opened on a limited (“beta”) basis in May 2005, it was attracting some 30,000 visitors per day.
History of the Google-YouTube deal
Alphabet is constantly looking for novel technologies that can enrich its portfolio of businesses. Acquiring smaller companies often eliminates emerging rivals, thus reducing competition for Alphabet. This is one reason Alphabet is currently the target of an antitrust lawsuit that was filed by the U.S. Department of Justice (DOJ) and eleven state Attorneys General in October 2020.
In 2007, the basketball highlights DVD The Ultimate Pistol Pete Maravich MIX received favorable reviews from Sports Illustrated and Dime Magazine. With over $290.4 billion in AUM, the iShares Core S&P 500 https://traderoom.info/ ETF (IVV) is one of BlackRock’s largest ETFs. 2.1% of the fund’s portfolio is made up of GOOG shares, while 2.3% is made up of GOOGL shares, with both making up the final top 10 holdings of the fund.
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Google closed the Fitbit buyout in January 2021 after the deal was first announced in November 2019, adding to its wearable-device lineup following its acquisition of the Timex smartwatch technology in 2019. Google announced its intent to purchase publicly-traded cybersecurity firm Mandiant, Inc. (MNDT) on March 8, 2022, for $23 per share—roughly $5.4 billion. The company, which focuses on cybersecurity testing and cyber-incident response, will be folded into Google’s cloud computing business to help better secure cloud data.
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Page has a net worth of almost $120 billion, making him the fifth richest person in the United States. Other than Internet services and consumer goods, Google’s endeavors include smart cities (Sidewalk Labs). Google, Alphabet’s biggest subsidiary, serves as the holding company for the corporation’s online assets and ventures. On October 24, 2015, Sundar Pichai took over as Google’s CEO, succeeding Larry Page, who was appointed CEO of Alphabet. Additionally, on December 3, 2019, Pichai was appointed CEO of Alphabet.
By the summer of 2006, YouTube was serving more than 100 million videos per day, and the number of videos being uploaded to the site showed no sign of slowing down. YouTube, the world’s leading and largest video-sharing platform, has come a long way since its birth in 2005. Acquired by Google in 2006, it has grown over its journey into a global phenomenon. Today, it has billions of users and significantly impacts content creation, consumption, and monetisation. From its humble beginnings as a dating app concept to its current status as part of Alphabet Inc., YouTube’s journey has been marked by various vital milestones and innovations, from which we could make the most remarkable ones.
To manage the growing costs and risks, YouTube went in search of a buyer. Google finalized its acquisition of Looker in 2020, leveraging its capabilities through the Google difference between information and data Cloud service. At Google Cloud, Looker helps customers accelerate their ability to analyze data, deliver business intelligence, and build data-driven applications.
Ad Sales place targeted ads on video content, and content creators get 45% of the revenue from those ads. Content creators like gamers, make-up experts, travel vloggers, and bloggers also get creative with their video thumbnails to secure exposure and ad placements. Most of the early YouTube employees noticed only minor changes to their life, especially at first. Google added its mini convenience-stores to YouTube’s office, where employees could access as many free packs of gum and soft drinks as they wanted.
Stay ahead of trends, boost awareness, and grow your small business by using relevant holidays this February. Meanwhile, Alphabet, YouTube’s parent company, is projected at an average valuation of $1.4 trillion, with YouTube representing 15% of Alphabet’s trading valuation. Byrne remembers the team writing and recording a short video that Hurley and Chen ended up filming outside in the parking lot that day, the red and white striped awning of TGI Fridays visible in the background.
Even under the new ownership of a tech giant, Chen and Hurley had control. They shared an office, from which they delegated tasks to newfound hoards of employees that came from Google. As long as they could deliver the promised traffic demonstrating YouTube’s monumental growth, they had say over the decision-making, Chen said.
If an individual purchases five percent or more of a company’s shares, they may be deemed institutional investors and must file a Schedule 13D or Schedule 13G form. Approximately 34.4% of Alphabet’s outstanding class A shares and 31.6% of its outstanding class C shares are held by institutional investors. Institutional investors, defined as institutional investment managers having assets under management (AUM) of at least $100 million, are required to report their equity holdings on an SEC Form 13F, which they must file on a quarterly basis. Nearly 15 years ago, Alphabet Inc.’s (GOOGL, GOOG) Google purchased YouTube for the hefty sum of $1.65 billion. But back then, the video site had been around for less than two years—even if it was growing like a weed.
However, Google also generates revenue from other sources, including sales of apps, in-app purchases, hardware, and licensing and service fees, including those received from Google Cloud and other products. The internet environment was drastically altered when Google paid $1.65 billion in stock to acquire YouTube in October 2006. Along with giving Google a strong platform for video output, the ownership turned YouTube into a massive cultural and financial force. This calculated action gave Google the opportunity to leverage YouTube’s enormous user base and cultural sway in order to profit from the increasing popularity of online video consumption.
