• Google reported its first drop in advertising revenue since the beginning of the pandemic, with YouTube’s revenue down 8% year-over-year.
• YouTube is attempting to become an Aggregator of television, with its multiyear agreement to distribute NFL Sunday Ticket and its Primetime Channels launch.
• YouTube is also attempting to monetize its Shorts feature, with a revenue-sharing model similar to Spotify’s.
• Meta is facing pressure from YouTube’s monetization strategy, as it is more difficult to create compelling Reels than Stories.
• Google is more generous with YouTube monetization because it is a smaller part of its business, but other companies have a similarly cavalier approach to profitability.
Published February 7, 2023
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