TLDRs;
- YouTube overtakes Disney in July 2025 US TV viewership, marking a major entertainment industry power shift.
- Over 30 AI features launched, including automated editing, podcast visuals, and embedded shopping tools for creators.
- Alphabet reports YouTube revenue surpassing $50 billion, with forecasts it may soon exceed Disney’s $60 billion.
- AI is also being tested for age verification, aligning with new US regulatory requirements for digital platforms.
YouTube has hit a major milestone that reshapes the entertainment industry’s power balance. According to Nielsen’s July data, the Google-owned platform surpassed Disney in US television viewership, securing 13.4% of the market share.
This landmark achievement coincides with YouTube’s 20th anniversary and the rollout of more than 30 new artificial intelligence (AI) features unveiled during its annual Made on YouTube event on Tuesday.
The video giant, now with 2.7 billion global users, continues to cement its dominance in streaming and digital content creation, positioning itself not only as a social media powerhouse but also as a key rival to traditional media titans.
AI Powers Next Wave of Content Creation
To mark its anniversary, YouTube introduced a suite of AI tools designed to simplify and enhance the creative process. These include automated video editing, AI-generated podcast visuals, and embedded shopping link capabilities for monetization.
By weaving AI deeper into the platform, YouTube aims to empower creators of all sizes to publish faster, expand audiences, and build new revenue streams.
The emphasis on AI aligns with broader industry trends where generative tools are rapidly changing how media is produced and consumed. Creators can now automate time-intensive tasks, letting them focus on originality while relying on AI for scale. For YouTube, these advancements also strengthen engagement by encouraging more uploads and diversified content formats.
Revenue Growth Rivals Entertainment Giants
Financial analysts are watching closely as YouTube’s financial muscle grows stronger. Alphabet disclosed that YouTube generated over $50 billion in ad and subscription revenue in the four quarters ending September 2024.
MoffettNathanson, a Wall Street research firm, predicts YouTube’s annual revenue could soon surpass Disney’s media revenue, which topped $60 billion last year.
With its growing share of US TV viewing, YouTube is no longer just competing with streaming platforms like Netflix but is also edging into territory traditionally dominated by television networks. The convergence of advertising, subscription bundles, and AI-powered commerce could tip the scales further in YouTube’s favor over the next few years.
Expanding AI Beyond Creativity
While much attention has been on creative tools, YouTube is also deploying AI for platform governance and safety. In August 2025, the company began testing an AI-powered age verification system in the United States. Unlike conventional ID checks, the system analyzes viewing behavior to determine whether users are minors or adults.
If a user is flagged as under 18, YouTube automatically limits recommendations, activates privacy safeguards, and issues reminders to take breaks. Although users can appeal misclassifications by submitting government-issued IDs or selfies, early rollouts of similar systems on competing platforms have faced criticism for false positives.
The move comes shortly after the US Supreme Court upheld a Texas law mandating age verification for adult content access, creating legal momentum for industry-wide adoption. YouTube’s system demonstrates both its compliance efforts and its reliance on AI to handle sensitive regulatory challenges.
