YouTube Q4 Ad Revenue Hits $10.4 Billion Record, While Music Service Lags Behind Major Streaming Rivals
YouTube's ad revenue reached a record $10.47 billion in Q4 2024, marking a 13.8% increase from the previous year. This substantial growth was primarily driven by U.S. election advertising, with political spending nearly doubling compared to the 2020 elections.
Alphabet's earnings report revealed that their "subscriptions, platforms, and devices" segment, which includes YouTube Music, generated $11.63 billion in Q4, showing a 7.8% year-over-year increase. However, YouTube Music continues to lag behind major competitors like Spotify, Apple Music, and Amazon Music in U.S. subscriber numbers.
Spotify maintains its market leadership with 263 million worldwide subscribers as of Q4, despite facing numerous NMPA infringement claims. The company's stock reached a new record high exceeding $630 per share, with UBS setting an ambitious target of $720.
YouTube has made significant strides in video content, particularly in podcasting, where it has overtaken Spotify to become the leading platform in U.S. TV watch time. This success comes as Spotify expands its video offerings, notably launching a revamped video podcast monetization program in November 2024.
While YouTube's ad revenue demonstrates impressive growth, the platform doesn't disclose specific subscriber numbers for YouTube Music or break down revenue by individual services. During the latest trading session, Alphabet's stock (NASDAQ: GOOG) declined by approximately 7%, closing at $193.30 per share.