Google’s paid subscriptions rose by 25 million in the first quarter, bringing the total to 350 million. The growth comes as YouTube Premium and Google One expand their user bases. Analysts expected steady but modest gains after last year’s slower growth. Instead, the company reported its largest quarterly increase since 2023.
The jump is largely attributed to YouTube Premium, which now includes ad-free viewing, offline downloads, and access to YouTube Music. The service added 15 million subscribers in Q1, up from 10 million in the previous quarter. Google One, the company’s cloud storage and subscription bundle, also contributed significantly. Its user base grew by 10 million, driven by expanded features like VPN services and enhanced photo backup.
Total revenue from subscriptions reached $1.2 billion in the quarter, a 12 percent increase from the same period last year. Google did not break down profits by service, but executives highlighted YouTube’s role in the rise. "YouTube’s premium tier is now a core part of our ecosystem," said a company spokesperson.
The growth contrasts with stagnation in Google’s other subscription services, such as Google Play Pass and Nest Aware, which saw little change. The company plans to focus on integrating YouTube and Google One further, aiming to simplify billing and add shared family plans.
Investors reacted positively, with Alphabet’s stock climbing 3 percent after the announcement. Analysts warn, however, that competition in streaming remains fierce, with Netflix and Disney+ also reporting strong subscriber growth this quarter.
Source: techcrunch.com