When all is said and done, YouTube looks to have a net revenue of $1.96 billion this year — that’s after dealing out most of the $5.6 billion it accumulated in 2013 to partners and content creators. The $5.6 billion is an increase of 50 percent from the previous year, and considering Google picked up YouTube for a now considerably minor $1.65 billion, it’s clear that as increasing numbers of young consumers turn away from television and towards online media, Google made a sharp acquisition.
Compounding this information is the news that after 30 years of consistent growth in ad revenue, television has finally peaked, and must now step up their actions in order to secure funding that used to be expected. “There’s ongoing fragmentation in viewing,” said Dan Cryan, senior director of digital media with IHS, a media research firm to the Financial Times. “TV viewing is more or less flat but total video viewing is going up and that’s being driven by things like YouTube and Netflix.”
Though the financial increase isn’t likely to be as sharp an uptick in the next few years, it should trend steadily upward.
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