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YouTube subscriptions are rising as more users turn to connected TV

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YouTube subscriptions are rising as more users turn to connected TV

Ad growth slowed in the third quarter of fiscal 2026 but still brought in more than $11 billion in revenue, according to parent company Alphabet.

YouTube’s ad growth slowed in the third quarter of fiscal 2026, with parent company Alphabet reporting that YouTube ads brought in $11.2 billion in revenue for the period. At the same time, YouTube’s subscription revenue is rising and the company is also developing more ways to build on creator revenue opportunities and drive more momentum in take-up.

First, YouTube’s Q3 ad revenue in fiscal 2026 grew 9% year over year, which is a slight slowdown from the 13% growth reported in Q2.

In addition to its ad intake, YouTube contributed to an 11% increase in Google’s overall subscription revenue, with YouTube Music and Premium now up to 150 million subscribers.

That’s up from the 100 million subscriber threshold that YouTube’s subscriptions reached in early 2024.

In Alphabet’s second-quarter earnings call in July, the company said that YouTube saw significant momentum in Premium sign-ups among connected TV viewers for that period as more people watched YouTube content as an alternative to traditional TV.

YouTube is now the top streaming platform in the U.S., according to Nielsen’s The Gauge report from Aug. 2026, which looks at U.S. TV viewing behaviors.

In an accompanying Q3 earnings call , Google Chief Business Officer Philipp Schindler said Living Room, YouTube’s connected TV experience, is becoming a bigger factor for YouTube revenue beyond just direct subscriptions, and accounted for more than one-third of total YouTube ads revenue.


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