YouTube's content spend, consisting of its distinct revenue-sharing arrangement with content creators, will rank as the second largest non-sports content spend globally in 2024, behind Disney, according to the latest report from Ampere Analysis.
While YouTube’s content investment differs from that of traditional studios, its total expenditure will be the third largest worldwide this year for the fourth consecutive year, when taking into account sports rights spend. This places it behind Disney and Comcast, with both forecasted to spend just over $9b on sports rights in 2024, yet YouTube’s total spend is ahead of any VOD-first player and some of the major studios.
Unlike SVOD platforms, YouTube’s main source of revenue is advertising, not subscription fees. YouTube’s advertising revenue alone, forecasted at $35 billion in 2024, exceeds Disney+ and Amazon Prime Video’s total earnings and falls just shy of Netflix’s total revenue.
YouTube is the number one platform for online video viewing globally and its advertising revenue is driven by its large user base. 83% of all respondents in the Ampere Media – Consumer survey were monthly active users of the platform in Q1 2024, ahead of monthly active video viewers for Netflix at 57% and Instagram at 43%.
Despite having few opportunities for re-licensing content on other platforms, YouTube has affirmed its focus on funding content creators. While it has experimented with more traditional-style commissioning in the past, this was never a primary way to incentivise production and YouTube has since significantly reduced commissioning activities. It announced just three commissioned titles in 2023 versus 60 in 2021. The YouTube Originals programme was shut down at the start of 2022.
Jaanika Juntson, Senior Analyst at Ampere Analysis said: “Despite limited re-licensing opportunities on other platforms, YouTube continues to invest significantly in content through revenue sharing with content creators, and has secured the second highest spot for non-sports content spend globally. YouTube’s unique business model sets the platform apart in the media market yet it plays a key role in the entertainment sector.”
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