YouTube Premium Rebranding Expected to Drive Revenue
In an effort to manage the rising competition in online video, YouTube is rebranding and expanding the YouTube Premium subscription service in order to raise revenue. YouTube is currently the global leader in online video. According to IHS Markit, YouTube Premium is expected to generate $2 billion in revenue in 2022, equating to 7% of the total revenue expected in 2022. YouTube’s primary competition is Twitch and Instagram. YouTube Premium subscriptions will be expanding the music platform, competing with the growth seen by both Spotify and Apple Music subscriptions.
Additional findings include:
- Online video advertising growth is driven by moving advertising budgets away from traditional TV outlets.
- 73% of YouTube Premium subscriptions will originate in the US, followed by 13% in Europe, 9% in Mexico and Canada, and 6% in Asia.
- Additional revenue drivers include paid individual channel subscriptions and an integrated merchandise store.
Read the IHS Market press release.