YouTube is larger than Netflix (NFLX). We estimate that YouTube generates annual revenue of approximately $43.3 billion (versus fiscal year 2022 Revenue of $31.6 billion for Netflix).
- 2022 YouTube Ad Revenue (as reported): $29.2 billion.
- YouTube TV revenue: $3.5 billion. (We assumed 4 million YouTube TV subscribers at $72.99 per month. The $72.99 price is effective April 2023, up from $64.99 previously. YouTube disclosed it had 5 million paid subscribers and trialers. We assumed 4 of the 5 million were paid subs.)
- YouTube Premium & Music revenue: $10.6 billion. (We assumed 80 million Premium and Music subscribers at an ASP of $10.99 per month based upon this YouTube disclosure. YouTube Premium costs $11.99 per month, YouTube Music costs $9.99 per month.)
- NFL Sunday Ticket. It is unclear what YouTube’s recent $14 billion, 7-year NFL Sunday Ticket deal will generate for annual revenue once it gains traction. Sunday Ticket goes live in September. Obviously YouTube wants to make its money back, which implies steady state annual revenue north of $2 billion. YouTube is fast approaching $50 billion of annual revenue across Ad Revs and Subscription Revs.
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