YouTube is now bigger than any individual US cable network for the key demographic of 18-49 year olds.
Following the results of a strong Q2 — which added $65 billion to Google's market value on Friday —CFO Ruth Porat stated that the company has seen “significant growth in YouTube revenues” in the last quarter. What’s more, the YouTube-owned video service also seems to be growing eyeballs, despite increased competition from Facebook. “Growth in watch time on YouTube has accelerated,” said Porat, adding that global watch time is up 60 percent year-over-year, with mobile watch time more than double from what it was a year ago. Porat’s remarks got seconded by Google’s chief business officer Omid Kordestani, who called YouTube’s watch time growth “the fastest we’ve seen in a couple of years”. A year ago, YouTube’s watch time had accelerated by 50 percent year-over-year, according to a Google spokesperson.
Data also confirm that the number of users who visit YouTube starting at the homepage - just as they might if they were using a TV - has increased by 3x year-on-year. Once those users land on the site, they are staying longer and spending more time per session watching videos. For viewers coming via mobile, the average viewing session is now more than 40 minutes, that's an increase of 50% compared to 2014.
- YouTube Watch Time has increased by 60% year-on-year
- The average YouTube session on mobile is now 40 minutes
- Fastest growth rate in viewing time in 2 years
- YouTube's top advertising partners increased their ad spend by 60%
- On mobile, YouTube attracted more viewers aged 18-49 than any US cable network
- Google confirmed that YouTube has more than 1 billion active users
- Viewers who entered YouTube via its homepage tripled compared to 2014
- The number of YouTube megastars earning six figures from the site has increased by 50%
According to The Wall Street Journal’s sources, YouTube posted revenues of about $4 billion in 2014 — up from $3 billion a year earlier. But YouTube has not become profitable as of yet. Google acquired YouTube in November 2006 — which is about a year and a half after the video company was founded — for $1.65 billion. Currently, over 300 hours of video are uploaded to YouTube per minute. By offering a wide variety of content, YouTube is becoming the primary choice for kids’ entertainment.
It's planned roll-out of an ad free subscription offering for the streaming service is still a work in progress. Various media reports suggest Google has yet to make deals with any of the cable networks, but has signed up most of its key content providers.
- Sources: Bloomberg, WSJ, The Video Marketers Guide