YouTube Red was YouTube‘s first foray into paid subscription services when it launched in 2014. The service offered an ad-free viewing experience, offline playback, and access to YouTube Originals. However, YouTube Red was rebranded as YouTube Premium in 2018. So how many people still use YouTube Red in 2024? The short answer is zero – YouTube Red no longer exists as a separate service. However, we can look at the rise and fall of YouTube Red and the growth of YouTube Premium subscriptions to understand how YouTube‘s paid services have evolved.
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A Brief History of YouTube Red
YouTube Red launched in October 2015, starting in the US and gradually expanding to other countries. The service cost $9.99 per month and offered ad-free videos, offline playback, and access to YouTube Originals content.
In its first year, YouTube Red had around 1.5 million subscribers. This grew to around 3 million by 2016. However, growth stalled in 2017 with just 2.8 million subscribers. The brand "YouTube Red" had failed to gain much traction.
There were a couple of factors behind this:
- The name was confusing – some associated it with adult content site RedTube.
- The benefits weren‘t compelling enough for most users. Paying to remove ads didn‘t appeal to the masses.
- Exclusive Originals content was limited in the early days.
So in May 2018, YouTube announced it would rebrand the service as YouTube Premium. This helped distance it from the YouTube Red name. More importantly, YouTube added music and YouTube Kids access to the package while raising the price. This bundle of benefits proved far more popular than the earlier YouTube Red offer.
The Growth of YouTube Premium Subscribers
After rebranding to YouTube Premium in 2018, YouTube‘s paid subscriber numbers started taking off:
- 2018 – 10 million
- 2019 – 20 million (+10 million)
- 2020 – 30 million (+10 million)
- 2021 – 50 million (+20 million)
In 2022, YouTube Premium was up to 80 million subscribers according to internal data reported by The Wall Street Journal. That‘s an incredible rise over the past 5 years.
The global subscriber numbers in recent years were as follows:
- 2019 – 20 million
- 2020 – 30 million
- 2021 – 50 million
- 2022 – 80 million (estimated)
So YouTube Premium has gained around 30-40 million subscribers per year in recent times.
What‘s Driving YouTube Premium‘s Growth?
There are several factors behind YouTube Premium‘s rapid growth:
- Rebranded offer – The YouTube Premium name and bundled benefits resonated far better than YouTube Red.
- YouTube Music – This was a big driver, as it effectively offered an alternative to Spotify.
- Exclusive content – Premium Originals like Cobra Kai helped drive sign-ups.
- Offline viewing – Being able to download videos to watch offline is a key benefit.
- Ad-free experience – For heavy YouTube users, an ads-free experience is appealing.
The combination of these benefits in the YouTube Premium bundle has made it a much easier sell than the earlier YouTube Red offer.
Importantly, YouTube Premium has grown significantly during the COVID-19 pandemic, as people spent more time streaming content at home. YouTube capitalized on this trend by pouring investment into its Originals content catalog.
YouTube Premium vs Netflix
It‘s worth comparing YouTube Premium to Netflix, as they are competing subscription video services:
- Subscribers – Netflix currently still leads at around 230 million global subscribers. But YouTube Premium is catching up fast at over 80 million.
- Revenue – Netflix made around $30 billion in 2021, compared to estimated revenue of $3-4 billion for YouTube Premium currently. But YouTube‘s revenue is rapidly rising.
- Content catalogs – Netflix offers mostly full TV series and movies. YouTube Premium includes those plus YouTube creator content.
- Price – YouTube Premium is cheaper at $11.99 per month vs $15.49 for Netflix‘s most popular plan.
YouTube Premium is still behind Netflix overall but has tremendous momentum. And YouTube Premium offers a broader mix of content than just shows and movies.
Geographic Differences
YouTube Premium adoption varies significantly by country. Some key facts:
- The US, Japan, South Korea, and Australia have the highest adoption rates.
- Europe has mid-level adoption rates, led by the UK, Germany, and France.
- Emerging markets like India, Brazil, and Nigeria have weaker adoption rates so far.
This indicates there is still substantial room for YouTube Premium to expand globally in countries where uptake has been lower so far.
The Importance of YouTube Premium Revenue
YouTube Premium revenue is still small compared to YouTube‘s massive ad revenue. But Premium revenue is growing rapidly:
- YouTube ad revenue was around $28.8 billion in 2021.
- YouTube Premium revenue was estimated at $3-4 billion.
So Premium represented around 13% of total YouTube revenue. This is up from less than 5% just a couple of years ago.
Premium revenue is especially important, as it comes from paying subscribers who use YouTube more consistently. So the trend towards Premium revenue helps diversify YouTube‘s business beyond just ads.
As Subscription revenue keeps growing, it is forecast to make up a 20-30% share of YouTube‘s total revenue within a few years. This would make YouTube far less dependent on advertising revenue.
The Outlook for YouTube Premium
YouTube Premium has enjoyed sensational growth since relaunching in 2018. All signs point to continued rapid expansion in the next few years:
- YouTube aims to pass 100 million Premium subscribers in the next 1-2 years.
- Significant untapped potential remains in many international markets.
- Investments in new Originals will attract new subscribers.
- Offline viewing and ad-free experience benefits will continue driving upgrades from free users.
YouTube is poised to close the gap with Netflix. While it likely won‘t overtake Netflix in terms of total subscribers soon, the trajectory is very positive.
YouTube Premium is now a core part of YouTube‘s business model. So while the YouTube Red brand is gone, paid subscriptions are here to stay on YouTube.
Conclusion
YouTube Red ultimately failed to gain traction and was rebranded as the far more successful YouTube Premium in 2018. There are now zero YouTube Red subscribers left, given it no longer exists as a separate service.
However, YouTube Premium has grown remarkably since launching in 2018. It has rocketed to over 80 million subscribers globally as of 2022.
Key factors driving YouTube Premium‘s growth include:
- Bundled music, video, and kids content access
- Popular original programming
- Offline viewing capabilities
- Ad-free experience
YouTube Premium‘s subscriber base is still less than half of Netflix‘s currently. But the gap is rapidly closing as Premium sustains incredible growth.
Paid subscriptions are now an essential part of YouTube‘s business model, generating over $3 billion in high-margin recurring revenue. So while YouTube Red is gone, its successor YouTube Premium is thriving and looks set to pass 100 million subscribers soon.
