Revenue generated by Youtube from advertising hits $6.01 billion in the first quarter of 2021, representing a percentage difference of 17.4% to Netflix’s $7.16 billion.
This is a slight decrease from its Q4 2020 revenue, which stood at $6.88 billion, surpassing Netflix’s $6.64 billion revenue for the quarter.
“Between Q1 2019 and Q1 2020, YouTube advertising returns have fluctuated, with the lowest recorded in the first quarter of 2019 at $3.03 billion. Overall between the same period, the ad revenue has grown 98.34%. Elsewhere, Netflix revenue has been on an upward trajectory growing 58.4%,” data presented by Finbold has indicated.
Meanwhile, the revenue has been attributed to the health crisis.
“Both YouTube and Netflix have benefited from the health crisis, however, the former attracted more users because it’s largely free with a diverse content library. During the crisis, with many losing jobs, YouTube offered an opportunity to earn income resulting in an influx of content creators on the video-sharing platform. As more content creators troop to YouTube, competition is also building up. Quality directly impacts the rate of viewership on the platform. The sustained viewership has enabled YouTube to offer advertisers efficient reach to wider audiences.”
Overall, YouTube’s ads revenue stands a better chance of surpassing Netflix, considering the Google product has no formidable competition in the industry. The revenue might also surge further as YouTube expands its products like YouTube TV and YouTube Music to other parts of the world.
Elsewhere, Netflix is facing stiff competition from other streaming players like Amazon Prime and Disney+