YouTube Ads Revenue Closing on Netflix
Data presented by Finbold indicates that YouTube's advertising revenue for Q1 2021 stands at $6.01 billion, representing a percentage difference of 17.4% to Netflix's $7.16 billion.
YouTube's ad revenues for Q4 2020 stood at $6.88 billion, slightly surpassing Netflix's $6.64 billion revenue for the quarter. The revenue was YouTube's highest.
Between Q1 2019 and Q1 2020, YouTube advertising returns have fluctuated, with the lowest recorded in the first quarter of 2019 at $3.03 billion. Overall between the same period, the ad revenue has grown 98.34%. Elsewhere, Netflix revenue has been on an upward trajectory growing 58.4%.
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YouTube reaps big from a health crisis
The report explains how YouTube's advertising earnings have grown to almost match Netflix over the past year. According to the research report:
"Both YouTube and Netflix have benefited from the health crisis, however, the former attracted more users because it's largely free with a diverse content library. During the crisis, with many losing jobs, YouTube offered an opportunity to earn income resulting in an influx of content creators on the video-sharing platform. As more content creators troop to YouTube, competition is also building up. Quality directly impacts the rate of viewership on the platform. The sustained viewership has enabled YouTube to offer advertisers efficient reach to wider audiences."
Overall, YouTube's ads revenue stands a better chance of surpassing Netflix, considering the Google product has no formidable competition in the industry. The revenue might also surge further as YouTube expands its products like YouTube TV and YouTube Music to other parts of the world.
Elsewhere, Netflix is facing stiff competition from other streaming players like Amazon Prime and Disney+.
(Source: newsletter from Finbold)