Sunday, June 29, 2025

From Zoo Clip to $500 Billion Giant: YouTube Turns 20

On April 23, 2005, YouTube co-founder Jawed Karim uploaded a 19-second video titled \
On April 23, 2005, YouTube co-founder Jawed Karim uploaded a 19-second video titled “Me at the Zoo.” This marked the beginning of the world’s largest video-sharing platform, which celebrated its 20th anniversary this Wednesday. / Yonhap News

Market research firm Moffett Nathanson estimated that if YouTube were considered a standalone company, its value would range between 475 billion and 550 billion USD. This represents a 333-fold increase from when Google acquired YouTube from its founders in 2006.

According to another research firm, Similarweb, YouTube is the second most visited website in the world, following Google. As of this Wednesday, YouTube revealed that over 20 trillion videos have been uploaded to its platform.

This year, YouTube is expected to become the highest-revenue media company, overtaking Disney. In 2024, YouTube generated 54.2 billion USD in revenue, closely trailing Disney’s 59.7 billion USD.

Viewers spend 12 percent of their total TV time consuming YouTube content, surpassing Disney, Fox, and Netflix in this metric.

Brad Erickson, lead internet services analyst at RBC Capital Markets, emphasized that YouTube’s integration within Google provides a significant advantage. He noted that accessing user data from Google’s other business divisions enhances YouTube’s ad targeting and revenue-generating capabilities.

As Google’s core revenue source—search—is increasingly pressured by the rise of AI chatbots such as OpenAI’s ChatGPT and Anthropic’s Claude, YouTube remains a crucial pillar of Google’s business.

Cloud and YouTube: Alphabet’s New Growth Engines

Together with Google Cloud, YouTube now accounts for over 30 percent of Alphabet’s total revenue, establishing itself as one of the company’s fastest-growing segments.

Michael Nathanson, founding partner at MoffettNathanson, described YouTube as the clear winner in the streaming space. He highlighted its unique business model, which does not require significant content investments because creators generate value and attract users organically.

YouTube’s growth has been fueled mainly by subscription services such as YouTube Premium, YouTube Music, and YouTube TV. The number of paid subscribers to YouTube Premium and Music stands at around 107 million and is projected to reach 145 million by the end of 2027. YouTube TV is expected to have approximately 11.5 million subscribers simultaneously.

YouTube was founded in February 2005 by three former PayPal employees, including Jawed Karim. On April 23 of that year, Karim uploaded a 19-second clip titled “Me at the Zoo,” ushering in a new era of online video.

The following year, the founders sold YouTube to Google for 1.65 billion USD. Since then, YouTube has evolved from a simple video-sharing site into a global media powerhouse.

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