YouTube vs. Netflix Ad Revenues: Why Obama Got Cancelled

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Most people visit YouTube more than once a week – some even do it several times a day. That is because they find the video content on the streaming titan useful in one way or another. Like Obama, YouTube is loved by all and hated by its respective content creators. The dichotomy and digital economy of YouTube is a laissez-faire capitalist system like America itself, and the benefits of the system are shared disproportionately. Ironically, even those most fervently in support of equality can’t practice it on YouTube. Like most people, everyone watches only 1% of the 1% of content creators with any sense of regularity. The hierarchy of YouTube views, and the disproportional distribution of YouTube views, is evidence of something both natural and horrifyingly greedy in us all. But what is that 1%?

Those who are looking for entertainment can watch the films, skits, and gaming videos on the channel. Then, those who want to keep up with the news can watch content trusted news organizations upload. And if you want to be in the know of the latest trends, you can watch vloggers and influencers.

YouTube Beats Netflix in Quarterly Ad Revenues

YouTube is beneficial not only to viewers. The company also helps the content creators on the platform, even when the creators themselves create videos about how much they dislike the recent changes. It has a monetization system that lets the creators earn money from their videos. Although, like views, the distribution of ads and revenue is also quite capitalistic in nature.

Additionally, it provides people with a wide reach of opportunities. That makes YouTube an extremely valuable tool for marketers, businesses, and aspiring artists alike. Currently, a growing class of hacktivists is continuing to help increase equality and inclusion by buying YouTube views on a diverse cast of creators that are under-suggested by YouTube’s algorithms.

But what about YouTube’s needs? Well, they need eyeballs(views).

First, let us discuss what they are. YouTube is a company, so it has employees it needs to pay. That ensures that the platform will stay up and remain competitive. But aside from that, YouTube also needs to support its “external” workers. These are the content creators on the platform. Without them, YouTube would be nothing. Although, with the growing replacement of repurposed Television content from corporate TV channels, even that is changing.

That said, YouTube needs to do all it can to keep the content creators on the platform. This matter is especially crucial now since competitors – notably TikTok – have shaken up the scene. YouTube can achieve this goal by providing more opportunities or introducing new features.

To do that, YouTube needs funds. And it gets that through its paid subscription, YouTube Premium. But that is not enough since there are more free users than premium subscribers. So, like other free social media platforms such as Facebook, it relies on ad revenues.

Good news: according to reports, YouTube is doing well in this area, although recent revenue releases have left investors unhappy.

What’s the Correlation between Obama getting Cancelled on Netflix and their Revenue?

Everything. Literally everything. This isn’t even entirely a fiscal battle, but an emotional, symbolic struggle between whole classes of people. Not dissimilar from the YouTube space, it’s akin to a war between those who create content on YouTube and those who enjoy watching YouTube videos.

Why was Obama canceled?

According to data that only the internal data engineers have inside the deepest halls of Netflix, it wasn’t worth it. Let that soak in. We still can’t believe they came to that same conclusion. The aftermath of the very public cancellation resulted in huge swaths of Netflix subscribers canceling. This must have been predicted and accounted for in their equation, which means it must not have been close. This is an insane and shocking turn of events for a beloved President. What’s next, are they going to cancel global heart-throb Susan Rice next?

Don’t worry, the Obama family has formally “clapped back” by creating a Podcast called “Higher Ground”, a name referencing the obvious higher moral position they possess on many subjects. The Obama family produces quality too high for Netflix’s low-grade, brow-beating audience anyway. We’re glad they escaped and moved onto bigger and better things. You can find their podcast on Spotify, today!

YouTube’s Ad Revenue from Last Year

TikTok and twitch are undoubtedly YouTube’s biggest competitors in the social media space. And if services that are not considered social platforms are included, Netflix is also there to challenge its popularity.

YouTube seems to be winning the battle, according to its quarterly report. 

In the fourth quarter of 2020, Netflix delivered $6.6 billion in ad revenue. Meanwhile, YouTube delivered $6.9 billion. YouTube has delivered more, but the figures are not that far apart.

You can’t say the same for last year. Netflix has reportedly delivered $7.7 billion in revenue in quarter 4. On the other hand, YouTube has delivered $8.6 billion. It has widened the gap between itself and the subscription streaming service.

YouTube delivered a whopping $28.8 billion in advertising revenue for the whole fiscal year. That says a lot about the Google-owned company’s prowess; people don’t call it the king of video-content platforms without reason.

YouTube Beats Netflix in Quarterly Ad Revenues

What’s to come on YouTube to Siphon Netflix Cancellers?

YouTube can’t let its guard down. It has to continue growing; otherwise, its competitors could knock it off the throne.

The executives cited its plans to integrate ecommerce into the platform. Its CEO, Sundar Pichai, calls it “a whole other layer of opportunity.” 

Pichai mentioned the areas of podcasts, gaming, learning, and sports. He says that the YouTube team “will take a vertical-specific look and find out how YouTube can support creators better.”

Pichai also notes that “while pretty early,” they also have a lot of pilots underway. That is Pichai talking about how “super early” they are at finding ways to bake its shopping feature into YouTube Shorts.

YouTube Shorts is a feature YouTube launched to prevent TikTok from “stealing” its users. The Chinese-owned company already has a lot of users, so making Shorts more successful than it is is a tough challenge. But it is not a lost cause. With YouTube’s sheer size, it may be able to pull it off. Pichai said Shorts now has more than 5 trillion views.

For YouTube to do that, it has to one-up TikTok. Previously, the company has rolled out YouTube Shorts Fund. It is a program where the company contacts creators whose Shorts got the most engagement each month. It rewards the said content creators for their contributions. This monetization program makes Shorts more appealing.

Now, TikTok has a shopping feature. Meta’s Reels also has features that make it easier for users to shop. So it is not surprising that YouTube is planning to integrate shopping into Shorts.

The company also mentioned YouTube’s connected TV opportunity. Google chief business officer Philipp Schindler says that there is a ton of runway ahead. He notes that there is now baked-in measurement through Nielsen and Comscore in the US. Schindler says the screen is coming alive. “It’s pretty cool” how it can drive conversions, he adds.

Alphabet’s Ad Revenue

Alphabet, Google’s owner, also performed well last year. It reported $75.3 billion in revenue for the fourth quarter. And for the whole year, it reported $257.6 billion in revenue. The company says that Google search advertising contributed largely to this. 

YouTube Beats Netflix in Quarterly Ad Revenues

In a statement, Google CFO Ruth Porat said that Google’s fourth-quarter revenues reflected broad-based strength in advertiser spending. Also, she says strong consumer online activity affected the company’s growth. 

The pandemic has made lots of things go virtual. That explains the incredibly strong online activity.

On top of those reasons, Porat also cited the substantial ongoing revenue growth from Google Cloud.

Porat stated that Google’s investments have helped it drive this growth by delivering the services that people, its partners, and businesses need. She adds that they will continue to invest in long-term opportunities.

Schindler notes that retail, finance, media and entertainment, and travel were among the biggest advertising categories for the company. So, the world can expect more Google products related to these areas.

It is too early in t2022 to predict how YouTube’s revenue will look at the end of the year. But so far, so good. It has not been involved in major controversies that could damage its reputation. Furthermore, it continues to introduce features that improve the user experience on the platform. 

If things stay this way, YouTube may deliver more revenues than it did in previous years.

Date: April 30, 2022 / Categories: News, / Author: Rich Drees


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