YouTube has achieved a remarkable milestone, generating more than $60 billion (£44 billion) in revenue in 2025, as reported by Google. This figure encompasses income from both advertising and paid subscriptions, significantly outpacing the $45 billion reported by streaming competitor Netflix. This announcement marks the first time since YouTube’s acquisition by Google in 2006 that the company has disclosed its annual revenue figures for the platform separately.
YouTube’s Dominance in the Digital Landscape
According to Hanna Kahlert, a senior analyst at Midia Research, YouTube’s substantial revenue is indicative of its central role in the lives of digital consumers. “YouTube has become almost infrastructural for digital natives,” she remarked. Survey data reveals that over 70% of international consumers engage with the platform weekly, and more than half do so daily. Kahlert highlighted the diverse revenue streams available to YouTube, which include advertising and subscription services that enable the platform to effectively monetise its vast audience.
Despite a slight dip in global advertising revenue during the final quarter of 2025, which fell short of Wall Street projections at $11.38 billion (£8.37 billion), Google’s CEO Sundar Pichai referred to YouTube’s overall growth as part of a “fantastic year” for the company. He noted that YouTube Premium, which allows users to enjoy an ad-free experience, contributed to an increase in paid subscriptions across Google services, which have now surpassed 325 million.
Subscription Growth and Innovations
While Google has not disclosed specific subscriber numbers for YouTube, Philipp Schindler, the company’s chief business officer, indicated on a recent earnings call that the platform is experiencing “strong traction” in subscription growth. Schindler emphasised YouTube’s commitment to innovation, stating that the company is adapting to consumer preferences with new, more affordable tiers for YouTube TV and Premium services. Additionally, YouTube has implemented strategies to encourage subscription uptake, including exclusive features for Premium users, such as the ability to play videos in the background on mobile devices.
YouTube Shorts, the platform’s answer to TikTok, continues to thrive as well, averaging over 200 billion views daily. The service’s growing popularity further illustrates YouTube’s dynamic evolution beyond traditional content formats.
YouTube’s Evolving Role in Media
As YouTube celebrated its 20th anniversary last year, it solidified its position as the second most-watched media service in the UK, trailing only the BBC. According to Ofcom, an impressive 94% of UK adult internet users engage with the platform, spending an average of 51 minutes per day on it. In a landmark collaboration, the BBC recently announced plans to produce content specifically for YouTube, signalling a significant shift in how traditional media is engaging with digital platforms.
While YouTube’s revenue figures surpass those of Netflix, industry analysts caution that the comparison may not be entirely fair. Mike Proulx from Forrester noted that the majority of YouTube’s content is user-generated, contrasting sharply with Netflix’s professionally produced offerings. Nevertheless, the lines between platforms are becoming increasingly blurred, with Netflix now seeking partnerships with content creators, including popular YouTubers.
Addressing Concerns from Content Creators
YouTube’s ongoing success hinges on the platform’s relationship with its creators. However, some prominent figures, such as MrBeast, have expressed concerns about the impact of artificial intelligence on their content’s visibility. The European Commission has recently initiated an investigation into how AI-generated features, like Google’s AI Overviews, may affect creators and web publishers. In response, the UK’s markets regulator is proposing measures to enhance the control publishers have over how their work is presented in AI-generated summaries.
In light of these challenges, Google remains committed to investing heavily in AI technologies. Company leaders anticipate that these advancements will not only foster growth but also improve options for content creators and publishers alike.
Why it Matters
YouTube’s impressive revenue figures highlight its pivotal role in the evolving media landscape and underscore the platform’s capacity to adapt and thrive amidst changing consumer behaviours and technological advancements. The ongoing investment in subscription services and innovations is crucial for maintaining YouTube’s competitive edge, particularly as it navigates the complexities of creator relationships and the challenges posed by AI. As digital content consumption continues to evolve, YouTube’s strategies will be instrumental in shaping the future of online media.