YouTube’s Major Role in Alphabet’s Earnings

Alphabet Inc. (NASDAQ: GOOGL) had mixed quarterly results, some of the numbers reported have been very encouraging long term. The fourth quarter revenue reported showed an increase of 22% year over year, reaching $26.1 billion, and net income increased 8% reaching $5.3 billion. A significant portion of this growth comes from higher use of mobile and YouTube advertising.
The CEO of the tech giant Sundar Pichai, focused heavily on YouTube during the earnings call, and for a good reason. Pichai described YouTube as the “premier destination” for video streaming and sharing all over the world, indicating that the platform has seen “tremendous growth” in content providers. 
“At the heart of YouTube’s success is its booming community of creators. Every single day over 1,000 creators reach the milestone of having 1,000 channel subscribers… We are seeing traction with the rate of signups. We are not disclosing specific numbers but I’m excited at the progress there.” Pichai explained. 
Alphabet has been focusing on making YouTube more personalized and more easily searchable, creating YouTube Music, YouTube Kids, and YouTube Red. 
Providing incentive for video creators to invest time and effort into new content has obviously been a major goal for the company. “We think of YouTube again as an ecosystem. We are trying to connect creators with users, form a community, and so we work hard to bring more premium content.” Pichai added.

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