Entertainment
YouTube Subscriptions Are Growing Faster Than Ad Revenue
- Alphabet revenue and earnings topped analyst expectations, driving shares up 6.5% in after-hours trading
- YouTube’s ad revenue increased by 11% during the quarter, coming in at $9.88 billion.
- In the living room, U.S. viewers are now watching 200 million hours of YouTube content daily. As for YouTube Shorts, over 10 million channels are publishing daily shortform content as of March.
Alphabet now has over over 350 million paid subscriptions led by YouTube and Google One. Specifically, YouTube Music and YouTube Premium saw the largest quarterly increase in the total number of non-trial subscribers both globally and in the U.S. since YouTube Premium launched in 2018. The company shared this milestone on Wednesday as part of its first quarter earnings call.
In fact, revenue from YouTube’s subscriptions have grown faster than the platform’s ad division. By the end of the first quarter, YouTube Premium was fully launched in 23 countries. In the second quarter of the year, the company plans to launch the offering in more than a dozen new countries. As for the Alphabet’s other subscriptions, this past quarter was the strongest ever for Alphabet’s AI plans, primarily driven by adoption of the Gemini app.
It wasn’t just YouTube’s subscriptions that had a good quarter. Revenue from YouTube ads grew by 11% to hit $9.88 billion, which was driven by an increase in direct response advertising. In the past several months, YouTube has invested heavily in better connecting its creators to brand partners and adding clickable ads to YouTube Shorts, which likely contributed to the overall growth.
As for YouTube itself, viewers in the U.S. now watch 200 million hours of YouTube content daily in their living rooms, the company reported on Wednesday. YouTube Shorts has also taken off with over 10 million channels publishing shortform content daily as of March.
Overall, it was a strong quarter for Alphabet. Revenue for the quarter increased by 22% or 19% in constant currency, which accounts for foreign exchange rate fluctuations, to hit $109.9 billion. This is the 11th consecutive quarter where the company has seen double-digit revenue growth. A main driver of that growth was the Google Services division, which increased 16% to hit $89.6 billion. That was led by a 19% lift in revenue from Google search; a 19% increase in Google subscriptions, platforms and devices; and the afforementioned an 11% bump in YouTube ads.
The Google Cloud division also saw notable growth as revenue increased by 63% to hit $20 billion. That was largely due to an increase in Google Cloud Platform across enterprise AI solutions and enterprise AI infrastructure
Speaking of AI, Alphabet also saw an increase in research in development during the first quarter of the year. Costs related to R&D shot up 25.6% to hit $17 billion, likely related to the company’s continued investment in AI.
Alphabet also increased its capital expenditure guidance range for 2026. Previously, capex was predicted to range from $175 to 185 billion, but on Wednesday the company announced that its new predicted range is $180 to 190 billion. This bump has to do with Alphabet’s acquisition of the data center and energy infrastructure solutions company, Intersect.
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movies
Tokyo Film Festival to Honor Mohammad Rasoulof and Mipo O
The Tokyo International Film Festival will honor filmmakers Mohammad Rasoulof and Mipo O with its Kurosawa Akira Award at the event’s 39th edition next month.
Named for the Japanese master, the award recognizes directors whose work has made an impact on cinema and who are expected to help shape its future. It was revived in 2022 after a 14-year hiatus with support from Capcom. Last year’s recipients were Chloé Zhao and Lee Sang-il.
This year’s honorees were selected by a committee comprising filmmakers Yoji Yamada and Lee Sang-il, cinematographer Akiko Ashizawa and TIFF programming director Shozo Ichiyama.
Rasoulof, one of Iran’s leading dissident directors now living in exile in Europe, won Berlin’s Golden Bear for There Is No Evil (2020), while The Seed of the Sacred Fig (2024) received a special prize at Cannes before earning an international feature Oscar nomination as Germany’s submission.
The committee singled out the two films for “their humanist perspective, which portrays even those who perpetrate oppression as ordinary citizens.” It also praised Rasoulof’s “unwavering commitment to creative expression despite relentless pressure.”
“Receiving the Kurosawa Award is a great honor for me. His films are profound explorations of the human condition and the moral choices we make in moments of crisis. Kurosawa was a dynamic and inquisitive visual storyteller whose unique perspective on humanity, nature, and the world has made his work an enduring source of inspiration in cinema,” Rasoulof said.
O, a Japanese-born filmmaker of Korean descent, made her feature debut with The Sakais’ Happiness in 2006. Her credits include The Light Shines Only There (2014), Japan’s Oscar submission that year, and Being Good (2015), an ensemble drama exploring child abuse, bullying and the possibility of breaking those cycles through human connection.
After a nine-year break from feature filmmaking, she returned with Living in Two Worlds (2024), a family drama starring Ryo Yoshizawa as the hearing son of deaf parents, whose desire for independence complicates his relationship with his mother. Her latest, How Dare You? (2025), takes a more comic approach to childhood, following three elementary school students whose budding environmental activism — mixed with a classroom crush — leads to unintended consequences.
The selection committee praised her “multifaceted perspective on individuals living on the margins of society” and her avoidance of “a simple lens of good vs. evil,” while highlighting her work with child performers.
“To receive such an extraordinary honor on the 20th anniversary of my directorial debut fills me with immense gratitude and deep humility,” O said. “Winning the Shindo Kaneto Award in 2010 provided me with the vital support to keep making films. Though my progress has been slow, reaching the Kurosawa Akira Award is a stroke of fortune that makes me truly savor what a happy cinematic journey I have had. This recognition is by no means mine alone. My heartfelt thanks go to all the cast and crew members I have met along the way, the audience who stepped into the theaters, and the selection committee—led by director Yamada Yoji—who discovered my films.”
Tokyo will also screen 4K restorations of Kurosawa’s Sanshiro Sugata (1943) and Ikiru (1952), alongside Charles Chaplin’s The Circus (1928) and Abbas Kiarostami’s Where Is the Friend’s House? (1987).
Separately, the festival named Alice in Borderland actor Hayato Isomura president of its Ethical Film Award jury. Launched in 2023 with Sumitomo Corporation, the prize recognizes films addressing social issues including the environment, poverty and discrimination. Three members of TIFF’s Student PR team will join Isomura on the jury.
The nominees are Brazil’s Amadeo and the Hypothetical New World, the German-Ukrainian feature I Rarely Wake Up Dreaming and Australia’s Time and Tide. The award ceremony and a talk with Isomura are scheduled for Nov. 2.
“Today, we absorb vast amounts of information in seconds through a small screen. I often feel we fall into the trap of believing we understand something instantly, constantly searching for quick answers. Yet, when it comes to deepening our awareness and understanding of social issues, the process of reaching those answers is what truly matters,” Isomura said. “Cinema possesses the unique power to pause our hurried pace, allowing us to experience that very process through the lives and emotions of others. I am committed to taking the thoughts, hopes, and wishes woven into these films by each filmmaker deeply to heart, and to reflecting on them together with everyone.”
The 39th Tokyo International Film Festival runs Oct. 26-Nov. 4, with the TIFFCOM market taking place Oct. 28-30.
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