Google earnings: 100 million Google One subscribers, Google Cloud profits
Alphabet's earnings call was yesterday, and as usual, the company took in a lot of money ($86.31 billion), thanks mostly to ad click-through rates being at a certain level. More interesting, though, are the product numbers tucked away in the report.
For the good news, a big announcement was the success of one of Google's biggest subscription plans, Google One, which CEO Sundar Pichai said is "just about to cross 100 million subscribers." Google One is mostly a cloud-storage plan for Google accounts, allowing users to pay a monthly fee to get more than the 15GB of Drive and Gmail storage that comes free with a Google account. Pichai says the company's whole subscription business-which is going to be Google One (storage), Google Workspace (business accounts), YouTube Premium (ad-free YouTube), and YouTube TV (a cable TV alternative)-are up to $5 billion in annual revenue. That's up fivefold since 2019.
Speaking of subscriptions, one of Google's most expensive, the $350-a-year NFL Sunday Ticket, didn't have any hard numbers associated with it. Google SVP and CBO Philipp Schindler said the company was "pleased with the NFL Sunday Ticket signups in our first season." Sunday Ticket was always a money-loser for DirecTV, and that was before the price shot up half a billion in the streaming era. Google is now reportedly on the hook to pay the NFL $2 billion a year for the next seven years. When asked about a return on investment for the project, Schindler only cited "solid" advertiser interest and that "NFL Sunday Ticket supports our long-term strategy and really helps solidify YouTube's position as a must-have app on everyone's TV set."