YouTube sets to surpass Disney as top media company by 2025
- YouTube is estimated to be worth between $475 billion and $550 billion, making it a leading media company.
- The platform has 107 million paid subscribers expected to grow significantly by the end of 2027.
- YouTube's prominence in the media landscape reflects a major shift from traditional entertainment channels as it competes with platforms like TikTok.
In the United States, YouTube, launched twenty years ago, is projected to be worth between $475 billion and $550 billion, according to analysts from MoffettNathanson. With a competitive presence in the entertainment industry, YouTube is expected to surpass Disney in revenue by 2025. The platform benefits from Google's extensive data on its user base, allowing for precise targeted advertising. According to Michael Nathanson, founding partner of MoffettNathanson, YouTube’s growth is significantly driven by its ability to attract paid subscribers, expected to increase from 107 million to 145 million by the end of 2027. This growth comes amidst fierce competition from TikTok, which gained popularity during the pandemic and prompted Google to invest in YouTube Shorts, a vertical video feature aimed at capturing a younger audience. Furthermore, YouTube faces legal scrutiny, particularly in relation to antitrust issues concerning Google's ad market dominance. As this situation unfolds, there’s uncertainty around the possible divestiture of YouTube by Google, which could redefine the platform's future dynamics in the industry. The evolving nature of content creation on YouTube also allows creators, like Jacklyn Dallas, to engage more deeply with their audiences, contributing to the platform's appeal against traditional Hollywood avenues as they receive recognition comparable to A-list actors. As YouTube grows, it poses a significant challenge to the entertainment industry, signaling a shift towards platforms that prioritize both unscripted and scripted programming originating from digital content creators.