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Profits Are Elusive in Creator-Centric Models
YouTube's revenue has surged from a $5 billion run rate to $35-40 billion annually, yet it faces significant profitability challenges. Google does not disclose YouTube's profitability; rather, it highlights revenue alone. The platform's commitment to creators is considerable, with 55% of revenue from long-form content and 45% from shorts paid out directly, creating a daunting business model as it incurs high direct variable costs. Over the past three years, YouTube has allocated $70 billion to creators, surpassing Netflix's content expenditure. While YouTube has strategic value as a leading search engine and social media property and offers insights for AI training, its financial viability remains uncertain, questioning the overall profitability of its creator-centric approach.