YouTube – a media company with revenues comparable to a small country

A symbolic turning point has occurred in the media business. The YouTube platform has effectively become the largest media company in the world by advertising revenue, surpassing the combined results of several traditional giants of the entertainment industry.

According to the latest estimates from the analytics firm MoffettNathanson, YouTube’s advertising revenue reached $40.4 billion in 2025. This is more than the combined advertising revenues of four major Hollywood media conglomerates: The Walt Disney Company, NBCUniversal, Paramount Global, and Warner Bros. Discovery. Their total advertising revenue amounted to about $37.8 billion.

If another major player, Fox Corporation, is added to the list, traditional media still remain slightly ahead with a combined total of about $44.8 billion. However, the very fact that a single digital platform has nearly matched an entire group of the largest television media companies shows the scale of the changes taking place in the global media industry.

A new center of the media universe

YouTube belongs to the technology giant Alphabet Inc., the parent company of Google. The platform was created in 2005 and was initially perceived as a website for sharing user-generated videos. However, over two decades it has transformed into a global media platform where content of all formats is published, from short entertainment clips to full-scale documentaries and television programs.

Today YouTube performs several roles simultaneously:

• video hosting service
• streaming platform
• advertising media network
• platform for bloggers and independent producers
• television alternative for millions of viewers

In essence, it is a hybrid of a television network, a video platform, and a social network.

Advertising remains the main source of revenue

The primary source of YouTube’s revenue is advertising. In 2025 the platform’s advertising revenue reached $40.4 billion, making it the largest player in the video advertising market.

Companies place advertising on the platform in various formats:

• ads before videos
• advertising inserts during playback
• banners
• integrations within bloggers’ content

The main advantage of YouTube over traditional television lies in precise audience targeting. The platform’s algorithms allow advertisers to show ads to specific groups of users depending on their interests, age, region, and viewing history. Such precision significantly increases the effectiveness of advertising campaigns.

Subscriptions bring in tens of billions more

In addition to advertising, the platform is actively developing paid services. According to analysts’ estimates, YouTube generates about $22 billion annually from subscriptions.

This revenue is formed through several products:

• YouTube Premium – a subscription without ads with additional features
• YouTube Music – a music streaming service
• YouTube TV – online television with access to channels and broadcasts

Together, advertising and subscription revenues create a media business that is already comparable in scale to the budgets of small countries.

How YouTube overtook television

YouTube’s growth became possible due to several structural changes in the media industry.

First, audiences are gradually moving away from traditional television. Younger viewers increasingly prefer watching content on smartphones, tablets, and laptops rather than on television screens. Second, a new ecosystem of content creators is emerging on the platform. Thousands of independent authors, bloggers, journalists, and studios create videos that gather millions of views. Unlike the classical television industry, building a popular channel does not require a large studio or huge budgets. Third, recommendation algorithms help users discover new content.

The YouTube recommendation system analyzes viewers’ interests and suggests videos that they are highly likely to find engaging. This significantly increases watch time and audience engagement.

Television is changing

Traditional media companies are trying to adapt to the new reality. Giants such as The Walt Disney Company, Warner Bros. Discovery, and Paramount Global are actively developing their own streaming services. However, their business still largely depends on television advertising and cable networks – segments that are gradually losing audiences.

YouTube, by contrast, was built from the beginning on an internet-based content consumption model.

The paradox of the modern media system

Interestingly, many traditional media companies are simultaneously both competitors and partners of YouTube. On the one hand, they are losing audiences and advertising budgets to the platform. On the other hand, they actively publish their shows, trailers, clips, and program fragments on it because that is where the massive audience is located.

As a result, YouTube has become a kind of universal media platform through which content from almost the entire entertainment industry is distributed.

A new type of media giant

The main difference between YouTube and traditional media companies lies in its business model. Classical studios and television channels produce content themselves and bear the main costs of production.

YouTube works differently. Most of the videos are created by independent authors, studios, and users. The platform provides infrastructure – hosting, recommendation algorithms, and an advertising system – and receives a share of the revenue. This model scales much faster and cheaper than traditional television content production.

What this means for the future of media

YouTube’s financial performance shows how dramatically the structure of the global media sphere has changed. Twenty years ago the main players were television networks and Hollywood studios.

Today a single digital video service can compete with an entire industry. As internet audiences grow and mobile devices continue to develop, the influence of platforms like YouTube will only increase.

For advertisers, this means a shift toward more precise and personalized advertising models. For media companies, it means the need to adapt to a new ecosystem where the boundaries between television, the internet, and social networks are gradually disappearing.

And if the current dynamics continue, in a few years the question will no longer be whether YouTube will catch up with traditional media. Rather, it will be whether traditional media companies will be able to keep up with digital platforms that are changing the rules of the entire entertainment industry.