YouTube surpasses competition to claim top-earning position among iPhone apps
In a significant shift, YouTube has achieved the position of the top-grossing iPhone app in the U.S. for the first time, largely due to the launch of YouTube Red's in-app subscriptions in 2015.
YouTube Red, a premium paid subscription service introduced by YouTube, offers an ad-free experience, exclusive content, and offline viewing. The integration of in-app subscriptions enabled YouTube to monetize its massive user base more effectively on iPhones, leading to its rise as the top-grossing entertainment app by revenue.
This change marked a significant departure from YouTube’s usual reliance on ad revenue, representing a major milestone in the platform's monetization strategy. The introduction of in-app subscriptions transformed YouTube's competitive standing on Apple's App Store.
Another contributing factor to YouTube's increased revenue is Super Chat, YouTube's virtual tipping mechanism. However, the revenue sources of YouTube, other than YouTube Red subscriptions and Super Chat, are not specified.
It's worth noting that the Top Grossing Chart, reflecting YouTube's top position, was removed from Apple's App Store and is not accessible for public viewing. Some app store intelligence, such as Sensor Tower and App Annie, still have access to the data and have informed the market about it.
The revenue generated by YouTube does not include money from sources other than YouTube Red subscriptions, Super Chat, YouTube music, and YouTube gaming. User engagement features like Reels, Community, and Messaging have also seen a considerable growth.
The launch of the YouTube Red App has led to an increase in user spending on iOS. The growth of live streaming on YouTube has been considerable as well, further boosting the platform's revenue.
Although the most current figures confirm TikTok was the top-grossing app in 2022, YouTube’s revenue growth from subscriptions like YouTube Red contributed to its historical peak as the top-grossing iPhone app at the time these subscription features were introduced. This highlights how the introduction of in-app subscriptions can transform an app’s monetization and competitive standing on platforms like Apple’s App Store.
[1] Data sources: [App Annie, Sensor Tower]
Coding new features for its premium service, YouTube Red, allowed YouTube to incorporate in-app subscriptions, enhancing its monetization strategy on smartphones. With these subscriptions, YouTube transformed its competitive standing among gadgets, rising to become the top-grossing entertainment app on technology platforms like the Apple App Store.
