Google Subscription Services Ups Q4 Revenue Nearly 23% to $10.8 Billion

Alphabet Inc. Jan. 30 reported that its Google Services’ subscription, platforms, and devices business segment saw fourth-quarter (ended Dec. 31, 2023) revenue of $10.8 billion, which was up 23% from revenue of $8.8 billion in the prior-year period.

Google subscriptions include YouTube TV, YouTube Music and Premium, and NFL Sunday Ticket.

Google Services also includes products and platforms such as ads, Android, Chrome, devices, Google Maps, Google Play, Search, and YouTube. Google Services generates revenue primarily from advertising, the sale of apps and in-app purchases (such as movies and TV shows), and devices.

Google Services saw a 32% increase in quarterly operating income of $26.7 billion, from operating income of $20.2 billion in the previous-year period. Revenue increased 12.5% to $76.3 billion from $67.8 billion in the prior year period.

On the fiscal call, Philipp Schindler, chief business officer at Alphabet, said the company was actively looking at expanding YouTube TV into international markets.

“It is something we are closely looking at,” Schindler said without elaborating.

The recently concluded 2023 National Football League season featured the first year exclusive distribution of”NFL Sunday Ticket” on YouTube TV after nearly 30 years on DirecTV.

CEO Sundar Pichai hailed “Sunday Ticket,” calling the weekly offering a perfect fit for YouTube TV. Indeed, YouTube TV reportedly generated more than 1.3 million new subscribers after acquiring the rights last year.

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Google Q3 Media Subscriptions, Transactions Hit Another Fiscal Home Run

It was another great 90 days selling media subscriptions and digital movie and  TV show transactions on Google.

Alphabet Inc. Oct. 26 announced that its Google Services segment generated $23.9 billion in third-quarter (ended Sept. 30) operating income, which was up 66% from operating income of $14.5 billion during the previous-year period. Revenue skyrocketed 40% to $59.9 billion, from $42.5 billion last year.

Google Services covers Android, Chrome, Google Maps, Google Play, Search, and YouTube — generating revenue primarily from advertising; sales of apps, in-app purchases, digital content (i.e. movies, TV shows, video games, music, etc.) products, hardware; and fees received for subscription-based products such as YouTube Premium and YouTube TV.

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Specifically, YouTube advertising generated $7.2 billion, up 44% from $5 billion in the previous-year period. Network revenue increased almost 40% to $7.9 billion, from $5.7 billion. Google generated another $6.7 billion in fees, movie, TV show, music, games and related media unit sales and subscriptions (YouTube TV). That was up 23% from revenue of $5.7 billion a year ago.

“Our consistent investments to support long-term growth are reflected in strong financial performance, with revenue of $65.1 billion,” CFO Ruth Porat said in a statement. “We continued to deliver across our business by providing helpful and valuable experiences for both consumers and our partners.”