YouTube Hits $60bn Revenue Milestone as Subscription Strategy Gains Traction

Google's disclosure of YouTube's 2025 financial performance marks a watershed moment for the streaming industry. The video platform generated $60 billion in annual revenue through advertising and subscription services, significantly outpacing Netflix's $45 billion during the same period. This represents the first time Google has broken out YouTube's standalone financial results since acquiring the platform nearly two decades ago.

Midia Research senior analyst Hanna Kahlert notes the figure reflects YouTube's evolution into essential digital infrastructure. "Over 70% of international consumers use YouTube weekly, with more than half engaging daily," she explains, citing consumer survey data. This ubiquity allows YouTube to monetize through multiple channels: advertising revenue remains substantial, while YouTube Premium subscriptions—offering ad-free viewing and background playback—now contribute significantly to the bottom line.

Google CEO Sundar Pichai highlighted YouTube Premium's role in driving overall Google consumer subscriptions past 325 million accounts in 2025, though specific YouTube subscriber counts remain undisclosed. The company has accelerated subscription adoption through strategic product changes: introducing lower-priced tiers for YouTube TV and Premium, while restricting features like background smartphone playback to paying members. Concurrently, YouTube Shorts—the platform's TikTok competitor—now averages over 200 billion daily views, creating additional monetization pathways.

Philipp Schindler, Google's Chief Business Officer, emphasized the company's "strong traction" in subscriptions during investor briefings, noting YouTube is "innovating to meet consumers where they are." This positioning appears effective: Ofcom data shows YouTube has become the UK's second-most-watched media service after the BBC, with 94% of adult internet users spending an average of 51 minutes daily on the platform.

While comparisons with Netflix surface, analysts caution against direct parallels. "The lion's share of YouTube's content is user-generated versus 'Hollywood'-generated," explains Forrester's Mike Proulx. Yet competitive boundaries are dissolving—Netflix CEO Ted Sarandos recently told lawmakers "YouTube is TV," while Netflix signs content deals with prominent YouTubers. Meanwhile, Disney+ partners with OpenAI on short-form content, and YouTube will host the Oscars starting in 2029.

Creator relationships remain pivotal to YouTube's growth strategy, though tensions emerge around AI's impact. Top creators including MrBeast report traffic declines potentially linked to Google's AI Overviews—automated search summaries that reduce click-throughs to original content. This prompted European Commission investigations and UK regulatory proposals granting publishers more control over AI content display. Google maintains it's seeking "a path forward" for publishers while investing heavily in AI development.

The revenue milestone underscores a fundamental market shift: user-generated platforms now rival traditional media giants in revenue generation, with hybrid advertising/subscription models proving particularly potent. As YouTube deploys capital toward both creator ecosystems and AI capabilities, it navigates the delicate balance between technological innovation and content creator sustainability—a dynamic that will define the next phase of streaming economics.