Google’s subscription business posted strong growth in the fourth quarter, driven largely by YouTube’s expanding premium and advertising ecosystem. Alphabet revealed that it now has 325 million paying subscribers across Google One and YouTube Premium, up from 300 million just three months earlier a sign that consumers are increasingly willing to pay for ad-free and enhanced digital experiences.
YouTube alone delivered $11.38 billion in ad revenue during Q4, representing a 9% year-over-year increase. While this figure slightly missed analysts’ expectations of $11.84 billion, the platform still achieved a major milestone by generating $60 billion in total revenue for the full financial year, including subscriptions a 17% annual growth that reinforces YouTube’s position as one of the world’s most valuable media platforms.
Alphabet CEO Sundar Pichai credited much of the momentum to YouTube’s subscription offerings, especially its $8-per-month ad-free Premium tier, which continues to attract users globally. Although exact Premium numbers weren’t disclosed, the company confirmed strong adoption across markets. Pichai also announced plans to expand YouTube TV with over 10 genre-specific packages, aiming to provide more flexibility and attract cord-cutters seeking customizable streaming bundles.
On the engagement front, YouTube Shorts maintained its massive reach with 200 billion average daily views, matching last year’s performance. Importantly, Alphabet noted that in some countries, Shorts ads generate higher revenue per hour than traditional in-stream video ads signaling growing advertiser confidence in short-form content. This positions YouTube as a formidable competitor to TikTok and Instagram Reels in monetization efficiency.
Podcasts also emerged as a standout growth area. Viewers watched more than 700 million hours of podcast content on TVs in October alone, highlighting YouTube’s evolution into a multi-format entertainment hub rather than just a video-sharing platform.
Artificial intelligence is another major growth driver. YouTube reported that over 1 million creators are now using its AI-powered creation tools, while 20 million users engaged with its Gemini-based content discovery features in December. These tools are designed to improve content production, personalization, and discoverability strengthening creator loyalty while boosting viewer engagement.
Overall, YouTube’s combination of subscription expansion, advertising growth, Shorts monetization, podcast dominance, and AI innovation positions Alphabet strongly for 2025. As digital consumption continues shifting toward bundled subscriptions and creator-driven ecosystems, YouTube’s $60 billion revenue milestone signals not just financial success, but a broader transformation into a next-generation media powerhouse.
