Ask Onix
YouTube hits record $60bn revenue in 2025
Google disclosed on Wednesday that its video platform generated over $60 billion in revenue last year, marking the first time the company has publicly broken out YouTube's annual earnings since acquiring it in 2006. The figure, which includes advertising and subscription income, eclipses Netflix's $45 billion revenue for the same period.
Growth driven by subscriptions and ad innovation
While YouTube's global ad revenue for the final quarter of 2025 fell short of Wall Street forecasts at $11.38 billion, Google CEO Sundar Pichai emphasized the platform's broader momentum. He described 2025 as a "fantastic year," noting that YouTube Premium-Google's ad-free subscription service-played a key role in pushing total paid subscriptions across Google's consumer services to over 325 million.
Philipp Schindler, Google's chief business officer, told investors that YouTube is seeing "strong traction" in subscriptions, thanks to new, more affordable tiers for YouTube TV and Premium. The company has also introduced features exclusive to Premium users, such as background playback on smartphones, to incentivize sign-ups.
Short-form video and UK dominance
YouTube's short-form video feature, Shorts, continues to gain traction, averaging over 200 billion daily views. The platform's influence in the UK has grown significantly, with regulator Ofcom reporting that 94% of adult internet users in the country now use YouTube, spending an average of 51 minutes daily on the service. Last year, YouTube became the second most-watched media platform in the UK, trailing only the BBC.
In a landmark move, the BBC recently announced plans to produce content specifically for YouTube, further cementing the platform's role in the media landscape.
Competition and AI challenges
Despite YouTube's financial success, analysts caution that its business model differs from traditional streaming services like Netflix. Forrester analyst Mike Proulx noted that YouTube's revenue is largely driven by user-generated content, unlike Netflix's reliance on Hollywood-produced shows and films. However, the competitive lines are blurring, with Disney+ partnering with OpenAI to explore short-form content and YouTube set to host the Oscars starting in 2029.
Netflix CEO Ted Sarandos recently told US lawmakers that "YouTube is TV," underscoring the platform's evolution beyond its origins as a hub for viral videos. Netflix has sought to attract content creators, including popular YouTubers, to bolster its own offerings, though some creators, such as MrBeast, have raised concerns about the impact of AI on their livelihoods.
The rise of AI tools, including Google's AI Overviews-which generate summaries of search results-has sparked fears among creators about reduced traffic to their content. The European Commission launched an investigation in December to assess the impact of Google's AI summaries on content creators and publishers. Meanwhile, the UK's markets regulator has proposed measures to give publishers more control over how their work appears in Google's AI products.
"We believe we can find a path forward that provides even more choice to website owners and publishers," Google stated in its latest earnings report.
Future investments in AI
Despite the regulatory scrutiny, Google has pledged to continue investing heavily in AI, a trend echoed by other tech giants. The company's focus on AI development comes as it seeks to maintain its dominance in digital advertising and content distribution.
