YouTube creators have long relied on ads as their primary source of revenue. Whenever you watch a video and see an ad pop up, that’s how most creators make their money. But with the rise of YouTube Premium, some creators worry that if more people switch to the ad-free experience, their ad revenue might dry up.
YouTube Premium is a subscription-based service that enhances the YouTube experience by removing ads and offering several exclusive features.
While this might seem like a loss for creators who depend on ad revenue, YouTube compensates them by sharing a portion of the subscription fees collected from Premium users.
Is there room for fear?
In this article, we’ll demystify this topic by showing you real revenue data that breaks down how much creators earn from YouTube Ads compared to YouTube Premium. You’ll see exactly how many viewers are actually Premium subscribers and what that means for a creator’s bottom line.
YouTube Premium in Numbers
The cost of YouTube Premium varies significantly by country. As of 2024, the subscription price ranges from as low as $0.90 in Argentina to a whopping $21.12 in Switzerland. In the U.S., the standard monthly price is $13.99.
According to Wikipedia, as of January 2024, there are 100 million active monthly subscribers. Of those, 27.9 million subscribers come from the U.S. That sounds like a lot, but keep in mind that as of February 2025, YouTube has more than 2.70 billion monthly active users. This means that only 3.7% of users are Premium subscribers.
And this service isn’t new. YouTube Premium was launched on November 14, 2014, over a decade ago. With a year-over-year growth rate of about 5%, if this trend continues, there could be no more than 160 million subscribers by 2035.
YouTube's Cut
When it comes to earnings, YouTube takes a significant portion of the total revenue. For regular ads, creators receive 55% of the revenue, while YouTube keeps 45%. This means that for every $1.00 advertisers spend on your channel, you’ll earn $0.55.
But it’s not as simple as a flat rate. Ad revenue varies widely based on factors like your audience’s category and location. Creators with content in high-value niches - such as tech, finance, or business - often receive a higher cost per mille (CPM), which is the amount paid per 1,000 ad views. Additionally, viewers in regions like the U.S., Canada, and Western Europe typically generate higher CPMs compared to those in developing countries.
YouTube Premium Earnings
Unlike ad revenue, YouTube Premium earnings are distributed based on the total watch time of Premium users. YouTube allocates a portion of the subscription fees to creators based on how much time Premium members spend watching their content. While YouTube doesn’t disclose the exact percentage it takes from Premium revenue, estimates suggest creators receive around 55% to 65% of the total pool.
Let’s break down the math: if a Premium subscriber in the U.S. pays $13.99 per month, a portion of that goes to YouTube, while the remaining amount is split among creators based on watch time. If a creator’s content makes up 10% of a Premium user’s total watch time for the month, the creator earns 10% of that subscriber’s allocated payout.
For creators, this means that the more engaging their content is to Premium viewers, the higher their share of the revenue. While the payout per view from Premium can often exceed ad revenue, the key is having a dedicated audience that watches for longer periods.
The Value of Premium Users
The value of a YouTube Premium user to a creator is determined entirely by how engaging the content is. Unlike ad revenue, which is earned simply when an ad is shown, Premium revenue is distributed based on watch time (every second matters). This means that creators who produce long, binge-worthy content benefit the most from Premium subscribers.
A Premium user can sometimes be more valuable than several ad-supported viewers, especially when they consume hours of content. Consistent audience retention is key to maximizing this earning potential.
For YouTube, the math looks like this: if the average ad revenue per 1,000 views is around $4, a viewer would need to watch 3,000 ad-supported videos in a month for YouTube to earn $12 - the same amount it gets from a single Premium subscription. Most users don’t reach that level of activity, making Premium subscribers more valuable to the platform, especially since their payment is consistent regardless of how much content they consume.
Of course, this is generalizing, as CPM varies by country, ranging from up to $15 per 1,000 views in the US to less than a dollar in some developing regions.
Behind The Scenes Numbers
Here are the numbers from YouTube channels that have publicly shared their revenue data. These screenshots show the percentage of their income coming from ads, YouTube Premium subscribers, and other sources, giving a clear picture of how each revenue stream contributes to their overall earnings.
In conclusion, there’s no reason to fear that YouTube Premium will significantly impact creator revenue. With Premium subscribers making up a small portion of YouTube's user base, creators who produce long-form, engaging content can still benefit, earning the same or potentially more from Premium users.