YouTube is now the dominant force in streaming video, and its ascent is rewriting the rules of programmatic CTV advertising, AVOD monetization, and identity-based targeting.
A new deep-dive from MoffettNathanson Research positions YouTube not just as a top content platform — but potentially the largest media company in the world by revenue as early as 2025, surpassing legacy titans like Disney and Netflix. Here’s what it means for the evolving streaming TV ad tech ecosystem.
How Did Youtube Become the “King of All Media”?
YouTube’s growth isn’t just viral — it’s structural.
- Total revenue in 2024: $54.2 billion
- YoY growth: 19%, in line with 2023
- Subscription revenue growth (1Q23–3Q24): 38%
- Ad revenue growth in 2024: 15% (rebounding from 2023)
According to February 2025 data, YouTube is now the #1 source of TV content consumption in the U.S., beating not just FAST services but also traditional media (Disney, Paramount, NBCUniversal) and SVOD platforms like Netflix. This marks the second time in a year that YouTube has claimed this top spot.
Why It Matters for AVOD and FAST Players
YouTube’s dual-revenue model — advertising + subscriptions — makes it a hybrid AVOD/FAST powerhouse:
- YouTube Premium & Music: Ad-free + exclusive content
- YouTube TV: A direct competitor to traditional Pay TV bundles
- Primetime Channels & Sunday Ticket: Signals a shift toward premium live content aggregation
This shift has implications for every player in the STV supply chain — from SSPs like Magnite and FreeWheel, to DSPs like The Trade Desk, and ID resolution providers managing viewer targeting across devices.
The Under-Monetized Giant: Why This Is Just the Beginning
Despite record-breaking reach, YouTube remains under-monetized, especially on connected TV screens — the most valuable surface in the media mix.
As linear TV CPMs continue to soften and GRPs lose relevance, YouTube’s ad inventory presents a compelling opportunity for buyers seeking:
- Addressable TV at scale
- Real-time frequency capping (still a challenge for many FAST/AVOD players)
- Better attribution via ACR and server-side logs
The market opportunity is massive:
- $85B U.S. Pay TV market (ripe for disruption via YouTube TV)
- $30B U.S. non-Netflix streaming ad market (where AVOD and FAST live)
Industry Takeaway: YouTube Is the Central Aggregator Now
MoffettNathanson LLC’s thesis is clear: YouTube isn’t just a platform — it’s becoming the infrastructure layer of video.
Their call to Google:
“Lean in on YouTube. Improve monetization. Be more transparent.”
If YouTube were spun out today, it could be worth $475B–$550B, roughly 30% of Google’s (Alphabet) market cap.
But the real value lies in the ecosystem-level shift. For programmatic buyers, streaming TV publishers, and tech intermediaries like Roku, Samba TV, Xandr, Innovid, Amazon Ads, LG Ads, and Vizio, the rise of YouTube as the de facto media operating system forces a reevaluation of:
- SSAI infrastructure
- VAST/VMAP creative standards
- Cross-platform identity resolution strategies
Final Thought: A Moment of Reckoning for the Streaming TV Landscape
YouTube’s ascent represents a seismic reordering of the streaming TV ecosystem — and a call to action for platforms still catching up in areas like:
- Unified measurement
- Frequency management
- Transparent attribution
- Multi-format monetization
For brands and platforms alike, the question now is: Are you planning for a future where YouTube isn’t just a channel — but the channel?
