YouTube: The highest-grossing US app in the App Store
On March 21, Alphabet (GOOG) saw YouTube become the top-grossing app in the App Store for the first time. According to Sensor Tower, the platform has grossed more than $200.0 million in the App Store since it started its in-app monetization in 2015. The platform’s Red subscription has powered it to the top spot.
YouTube rolled out its YouTube Red subscription service three years ago, which gives paying subscribers access to ad-free videos, offers Spotify-like audio platforms, and allows users to watch videos offline.
YouTube Red powers YouTube to the top spot
YouTube Red carries a fee of $9.99 per month. The YouTube Red app on iOS charges $12.99 per month due to Apple’s 30.0% cut on all App Store purchases.
YouTube Red has also offered original content since 2016, including films, reality shows, and comedies. Given Google’s deep pockets, the company can eventually have a bigger budget for original content. As of June 2017, YouTube Red had launched 37 original series and movies on the platform, which has generated nearly 250.0 million views.
Alphabet stock is trading more or less flat for the year. The company’s ad business is facing some headwinds, including rising traffic acquisition costs.