Analyst Crowns YouTube ‘New King of All Media’ As Revenue, Reach Soar.
- Inside Audio Marketing
- 13 minutes ago
- 3 min read
YouTube may be a go-to for podcast creators and consumers, but a new report from Wall Street suggests something bigger is at play. MoffettNathanson declares YouTube the “New King of All Media” in an update to clients, projecting the platform will surpass Disney in 2025 to become the world’s largest media company by revenue. With $54.2 billion in revenue for 2024 and rapid growth in both ad and subscription segments, YouTube is now Alphabet’s most dynamic business unit after Search, comprising nearly 30% of total revenue.
Analysts argue that YouTube’s dominance in U.S. TV consumption — where it recently ranked No. 1 in total viewing time across all platforms — signals massive untapped monetization potential. While YouTube commands the largest share of connected TV viewing, its ad revenue per hour still trails platforms like Pluto, revealing a sizable opportunity to grow. Subscription-based offerings, including YouTube Premium, Music, and YouTube TV, are also accelerating.
“Perhaps even more significant than YouTube’s overall growth is where that growth is happening,” the report says. “Once primarily associated with younger audiences, YouTube is now seeing rapid adoption across all age groups.”
It’s an evolution that may have an impact on broadening the appeal of podcasts. YouTube’s fastest-growing U.S. viewership segment in 2024 was adults 65 and older, according to Nielsen, increasing by a third (+32%) last year. And growth was nearly as strong among 18- to 24-year-olds, with viewing up 27% year-over-year. But Nielsen says the strongest growth came from older demographics. Adults 35 and older now account for about 50% of all viewers.
“This demographic evolution bodes well for YouTube’s monetization potential, as older viewers typically have higher disposable income and are more valuable to advertisers,” analysts say. MoffettNathanson expects YouTube’s ad growth to decelerate. And a weaker economy could put pressure on advertiser spending. For now, analysts project YouTube’s advertising revenue to grow in the low double-digits over the next few years.
Subscription Momentum
The report doesn’t mention podcasting, but it says a major pillar of YouTube’s growth is its rapidly expanding subscription business, particularly through YouTube Premium and YouTube Music. Combined, these offerings generated an estimated $9 billion in revenue in 2024 — up 25% year-over-year.
YouTube Premium, which removes ads and includes YouTube Music, now commands over 100 million paid subscribers, with analysts estimating 107 million paid users at the end of 2024. That figure is expected to reach 145 million by 2027. The standalone YouTube Music service continues to attract music streamers globally, providing direct competition to Spotify and Apple Music with a differentiator — its tight integration with video content and user-generated discovery.
Despite premium content licensing costs — modeled at roughly $3.50 per subscriber per month — the subscription segment remains highly profitable, with operating margins estimated around 35%. Analysts point out that as the user base matures and expands internationally, YouTube Music could become a dominant global player in the streaming audio market.
YouTube TV and the Path to Aggregation
Subscription-based YouTube TV is also gaining ground, with more than 8 million paid subscribers and revenue projected to hit nearly $12 billion by 2027. It’s on track to surpass Comcast and Charter, becoming the largest pay TV provider in the U.S. by 2026, with over 10 million subscribers expected.
Still, analysts believe Alphabet could supercharge its influence by transforming YouTube into a true streaming aggregator — bundling services into a streamlined, cable-like experience. “Looking ahead, we expect subscription revenue growth to continue to outpace advertising, driven primarily by subscriber addition,” the report says.
But analysts think YouTube still needs to deepen its investment in content aggregation and monetization, particularly on connected TVs, where its dominance is growing fastest — especially among older viewers. As streaming fragmentation increases and traditional TV declines, YouTube is positioned to be the central hub of digital video in the years ahead.
What’s It All Worth?
Valued as a standalone company, YouTube could be worth $475 billion to $550 billion — nearly one-third of Alphabet’s market cap. While advertising growth may moderate, subscription products like YouTube Music and YouTube Premium are expected to play an increasingly central role in Alphabet’s monetization strategy, driving both revenue and user loyalty in the years ahead.