November 28th marked the one-month anniversary of YouTube Red, a $9.99-per-month premium subscription option launched by YouTube. The service’s age, however, is more than just a cosmetic milestone. Users who signed up for it at launch have now completed their one-month free trials, and as a result, Red is now raking in big money for YouTube. According to TechCrunch, the iOS version of the YouTube app is now one of the ten highest-grossing apps in the App Store.
The App Store’s Top Grossing chart counts revenue from both paid downloads and in-app purchases. Since the YouTube app is free, and Red is the only available in-app purchase, the video site’s #8 ranking on the Top Grossing chart (ahead of popular mobile titles like Boom Beach) can be entirely attributed to revenue generated by Red subscriptions.
Youtube top 10 grossing. Wow. pic.twitter.com/Ep0BVjb4jy
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— Ouriel Ohayon (@OurielOhayon) November 30, 2015
Ironically enough, it is the iOS version of YouTube that is seeing a good influx of Red revenue, despite the fact that users who download that version of the subscription service must pay an additional $3 to account for Apple’s cut of the sales. The higher price tag could explain YouTube’s place on the Top Grossing chart, especially since the Google Play version of the app has not appeared to generate as much revenue. TechCrunch also suggests that many Android users already have a subscription to Google Play Music, through which they also received a Red subscription upon the service’s launch.
No matter the reason why iOS users have downloaded Red, the service’s early returns are a positive sign for YouTube. TechCrunch consulted with several mobile marketing experts, who suggested that YouTube is making at least $12,000 per day from App Store revenue–and perhaps as much as $50,000. We’ll have to wait a few months to see how many of those purchasers hang onto their Red subscriptions–and how many lose interest.
