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YouTube brought in $7.2 billion in advertising revenue during the third quarter, a modest increase from its previous quarter.
The video platform is close to surpassing the revenue of Netflix, which reported $7.5 billion in Q3 revenue on Oct. 19.
Last quarter, YouTube brought in more than $7 billion in advertising revenue, outperforming the video platform’s Q1 ad revenue by roughly $1 billion. Google Advertising accounted for $53.1 billion of Alphabet’s total $65.12 in revenue reported during Q3, roughly a 5 percent increase from the $61.88 billion reported in Q2 and a 41 percent increase year over year.
In a statement shared ahead of Alphabet’s earnings call, Alphabet and Google CEO Sundar Pichai pointed to improvements in Google Search and the Pixel 6 as examples of successful product investments as Alphabet focuses on being an “AI-first company.”
Heading into Q4, Google and Alphabet CFO Ruth Porat said during the company’s Tuesday earnings call that she expected the “ongoing drivers of revenue growth” in other areas to be hardware, due to the holiday season and sales of Fitbit, and YouTube subscriptions. But Google Play’s contribution to revenue growth will “remain more muted,” according to Porat, due in part to the drop in service fees to 15 percent that began in July.
YouTube has continued its focus on short-form video through its YouTube Shorts offering. In late July, Shorts had surpassed 15 billion daily views.
“The next generation of businesses and media companies are being built by creators on YouTube, and we’re excited to help them grow,” Google’s chief business officer, Philipp Schindler, said during the earnings call, referencing the 2 million creators who participate in YouTube’s Partner Program.
But when it comes to distribution, the video platform has been stuck in an ongoing contract dispute with Roku that could result in the loss of the YouTube and YouTube TV apps from new Roku devices purchased after Dec. 9. Earlier this month, YouTube TV and NBCUniversal were also engaged heated negotiations but ultimately reached a deal to keep more than 14 NBCU channels on the streaming TV service.
Testifying before a Senate subcommittee on Tuesday morning, Leslie Miller, YouTube’s vp government affairs and public policy, said the video platform took down around 7 million accounts suspected of belonging to young children and preteens this year, with 3 million of those accounts removed in Q3 alone. YouTube also said it removed more than 1.8 million videos that violated YouTube’s child safety policies, according to a blog post shared on Monday.
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Academy of Motion Picture Arts and Sciences