Google’s YouTube Shorts is gaining significant traction, with more than 2 billion logged-in monthly users engaging with the short-form video platform. This places YouTube Shorts in a competitive position against rivals like TikTok and Instagram Reels. The surge in users marks a significant increase from the 1.5 billion monthly logged-in users reported last year, demonstrating the growing popularity of the platform.
In its Q2 2023 results, Google announced that YouTube’s ad revenue reached an impressive $7.67 billion, surpassing analyst estimates and showcasing a 4% year-on-year growth. To enhance its premium ad offering, YouTube Select, the company is introducing 30-second unskippable ads.
Google is not solely reliant on ad revenue for YouTube. It is actively diversifying its offerings through the platform. For instance, YouTube has initiated pre-sales of the NFL Sunday Ticket subscription, which will begin streaming in the upcoming Fall season. Additionally, a partnership with Warner Bros. Discovery allows YouTube TV to offer a Max-NFL Sunday Ticket bundle, expanding its sports content offerings.
Connected TV screens in the U.S. have become a significant focus for Google, with the company reaching 150 million people in this category. Furthermore, YouTube Premium and Music boasted 80 million paid users last year, but Google did not provide an updated figure during the Q2 2023 earnings call. However, recently, YouTube raised prices for its individual premium plan by $2 and its Music plan by $1 in the U.S.
The overall performance of Google parent company Alphabet was positive, with growth observed in ad and cloud revenues. In Q2 2023, Alphabet’s revenue amounted to $74.6 billion, compared to $69.7 billion in the same quarter of the previous year. The strong quarterly results led to nearly a 7% increase in Alphabet’s shares in after-hours trading.
Simultaneously, Alphabet appointed Ruth Porat, previously Chief Financial Officer, to the role of president and chief investment officer. With this promotion, Porat will oversee Alphabet’s diverse divisions, including self-driving company Waymo, health-focused Verily, and Google Fiber. This strategic move aims to strengthen Alphabet’s leadership structure and position the company for further growth and innovation in its various sectors.