A ground-breaking new report from consultancy Ampere Analysis has underlined the significant commercial muscle of the digital first creator economy.
The report set out to compare YouTube’s investment in content with the major US studios and streaming platforms. With a business model that places advertising as its main source of revenue, the Google-owned platform is rarely compared to TV. But Ampere’s findings show that YouTube’s content spend, consisting of its distinct revenue-sharing arrangement with content creators like MrBeast, will rank as the second largest globally in 2024, second to Disney but ahead of Netflix and Amazon.
Ampere’s primary analysis excludes sports rights expenditure. But even if this is included, YouTube’s content investment will come out as the third largest worldwide for the fourth consecutive year – only outspent by Disney and Comcast.
Underlining the strength of the platform as a mainstream media destination, Ampere said YouTube is the number one platform for online video viewing globally, with its ad revenue forecast to hit $35 billion in 2024. This exceeds Disney+ and Amazon Prime Video’s total earnings and falls just shy of Netflix’s total revenue.
The research firm also stressed that YouTube’s success is almost entirely down to its innovative revenue-share model with creators: “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 reduced commissioning activities. It announced just three commissioned titles in 2023 versus 60 in 2021. The YouTube Originals programme was shut down in 2022.”
Jaanika Juntson, senior analyst at Ampere Analysis, said: “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.”
