YouTuber has Taken 30 Billion US Dollars

YouTube disclosed on Monday (23rd) that it paid 30 billion US dollars to content creators in the past three years. Investors were surprised because this statement made investors more aware of Alphabet’s investment in website content, and its large sums also showed that the company is willing Spend a lot of money to ensure that your platform has attractive content.

There are signs that large technology companies are very interested in investing in content. For example, Facebook (FB-US) recently announced that it will invest 1 billion U.S. dollars by the end of 2022.

The news disclosed on Monday can bring more information for investors to compare YouTube and Netflix, because if compared to revenue, YouTube’s business can be on par with Netflix. This year YouTube is expected to generate 28.7 billion U.S. dollars in revenue, while Wall Street expects Netflix to generate 29.7 billion U.S. dollars in revenue over the same period.

Netflix has always disclosed the amount of investment in content (even if investors need to do more work and read carefully to get the real numbers), but unlike Alphabet, Netflix basically has a single business, which is to sell subscriptions to the content library, so invest You can also use gross profit margin to estimate the cost. This year, Netflix is ​​expected to generate 6.2 billion U.S. dollars in operating profits, with a gross profit margin of 21%.

However, investors were unable to obtain the same information from Alphabet, and YouTube only disclosed its advertising revenue, not the sales of subscriptions and other services. Alphabet only discloses the operating benefits of the entire Google Services division, including all divisions, except for Google Cloud and the moon landing project listed in “Other Stakes”, so it is difficult to know exactly how much money Alphabet spent on YouTube, including How much content is spent.

Therefore, this disclosure made investors wonder when YouTube spent $30 billion, in which quarters it was actually spent, and where this recognition was placed in the company’s financial statements. Alphabet did not respond to a request for comment.

Alphabet (GOOGL-US) shares rose by US$52.24 or 1.90% on Monday to close at US$2,800.83, a 52-week high.

Reviewer overview

YouTuber has Taken 30 Billion US Dollars - /10


YouTube disclosed on Monday (23rd) that it paid 30 billion US dollars to content creators in the past three years.

0 Bad!