💻 YouTube vs. Netflix

PLUS: Extended stay hotels are low-key cash cows. February 3, 2022 [The Hustle] Yesterday, we launched our new podcast, The Hustle Daily Show, giving you the same type of irreverent, informative news takes as this email, but with the added bonus of hearing our angelic voices. To celebrate, we’re giving away $5k+ in prizes to 8 people.* There was a tiny problem with the link we provided, [so we’re sharing it again here](. Good luck! In today’s email: - Google’s sleeping giant: YouTube has a higher annual run rate ($34B) than Netflix ($30B). - 15-minute delivery: The economics are questionable. - Extended stay hotels: A reliable investment that’s growing in popularity. - Around the web: Planting trees, an old fish, a sneaky cat, and more cool internet finds. Let’s do it. The big idea [YouTube and Netflix logos]( Is YouTube bigger than Netflix? Alphabet, Google’s parent firm, dropped its latest earnings report Tuesday night. And it was bonkers. Per [The Verge](, Alphabet’s revenue in 2021 hit a record $257B, a gain of 41% YoY. Somewhat absurdly for its size, this is the company’s fastest annual growth since 2007. The YouTube juggernaut Google acquired YouTube for $1.65B in 2006, but didn’t break out earnings for the streaming service until [2020](. For the latest quarter, YouTube ads [brought]( in $8.6B. Here’s the wild part: That’s an annualized run rate of $34B, which outpaced Netflix — a $30B run rate — for the 1st time. With a mostly ad-based business, YouTube is usually left out of the streaming subscription wars conversation… … but it’s clearly the video leader As one point of comparison, a [study]( of Android users found that in 2020 the average monthly time spent on YouTube was 23 hours (vs. ~6 hours for Netflix). Meanwhile, YouTube itself has more [active users]( (2.3B) than any social site other than Zuck Daddy’s Facebook (2.7B). And while we’re at it, here’s another wild stat: YouTube is the [2nd]( biggest search engine in the world (you can guess the first). Alphabet’s stock jumped 9%+… … on the strength of the earnings and news that it’ll do a [20-1]( stock split (which goes into effect in July). If the split happened today, $GOOGL would be ~$148 a share vs. ~$2,960 a share. Lower dollar values after a share split have worked as an enticement for retail investors, who [bid up]( Apple and Tesla following their respective splits. Split or no split, Google — and YouTube — will keep being bonkers businesses. [Share on Facebook]( [Share on Twitter]( [Send as email to a friend](mailto:?subject=The%20Hustle%20wrote%20something%20I%20think%20you%27ll%20like...%0A&body=Is+YouTube+bigger+than+Netflix%3F%0Ahttps%3A%2F%2Fthehustle.co%2F02032022-YouTube-Netflix%3Futm_campaign%3DYouTube%2BNetflix%26utm_content%3D02032022-YouTube-Netflix%26utm_medium%3Demail%26utm_source%3Ddaily%0A%0AYou%20can%20subscribe%20with%20my%20link%20here%20to%20get%20the%20latest%20in%20tech%20and%20business%20daily:%0A [View on our website]( SNIPPETS Metaverse boom: A new report [shows]( metaverse real estate topped $500m in sales in 2021, primarily focused on the “Big Four” platforms: Sandbox, Decentraland, Cryptovoxels, and Somnium. Android reactions: Google Messages [released]( iMessage reaction emojis for Android users. Reactions will appear as emojis on messages — similar to how they appear on iOS devices — rather than as text. Feeling snubbed: ~40k Tesla fans [signed]( a petition to get President Biden to acknowledge Tesla’s accomplishments in EV leadership, claiming he has snubbed the company while praising GM and Ford. Reality check: Facebook [reported]( that its Reality Labs division — which houses its metaverse-focused projects — generated $2.27B in 2021 revenue, falling short of expectations by ~$700m. Meta’s stock is down 18% after hours. Media evolution: Derek Thompson [tweeted]( wild stats highlighting how NYT’s revenue channels have changed. For instance, in 2020, new subscriptions made up 60% of revenue, but in 2021, non-news revenue (e.g., games, puzzles, cooking) made up 55% of subscription growth. CNN president Jeff Zucker [resigned]( from the network after failing to reveal a consensual relationship with a colleague during an internal investigation related to CNN’s former top-rated anchor, Chris Cuomo. UPDATE: Crisis Text Line, a nonprofit that provides mental health support through text, [announced]( it will stop sharing data with for-profit spinoff Loris.ai after widespread criticism. --------------------------------------------------------------- Hey — enjoy getting quick updates on what you care about? Take [20 seconds]( to personalize your Snippets. Pick your preferences👇 and we’ll send you more of what you love. Boom. [Personalize my Email →]( Chart [cost of deliveries]( The economics of 15-minute delivery are… interesting Gopuff, DoorDash, Gorillas, Jokr, Getir, and Buyk may sound like Pokemon, but Pokemon don’t lose money delivering groceries. These companies promise near-instant delivery, and they’ve raised [$5.5B+]( in VC money since 2020. But the economics are sketchy, at best. Last year, Fridge No More was losing $3+ per order, excluding the $70 it was spending to acquire each customer. To deliver quickly, you need hyperlocal warehouses, instant labor, and, ideally, high-value non-perishable products. “If it’s a toothbrush and banana, that’s not going to work,” one industry insider told WSJ. The idea is that with enough scale — and the right items — some companies could turn profitable. But it’s likely many will turn out like Kozmo.com, which shut its doors in 2001 after raising $200m+ a year earlier to deliver goods in one hour. [Share on Facebook]( [Share on Twitter]( [Send as email to a friend](mailto:?subject=The%20Hustle%20wrote%20something%20I%20think%20you%27ll%20like...%0A&body=The+economics+of+15-minute+delivery+are%E2%80%A6+interesting%0Ahttps%3A%2F%2Fthehustle.co%2F02032022-economics-of-deliveries%3Futm_campaign%3DYouTube%2BNetflix%26utm_content%3D02032022-economics-of-deliveries%26utm_medium%3Demail%26utm_source%3Ddaily%0A%0AYou%20can%20subscribe%20with%20my%20link%20here%20to%20get%20the%20latest%20in%20tech%20and%20business%20daily:%0A [View on our website]( Extended Pays [Extended stay hotels]( Extended stay hotels are a surefire investment They may not have buzzy nightclubs or [champagne bubble baths]( like some hotels, but one analyst [told]( The Wall Street Journal that, for investors, extended stays “print money.” At extended stay hotels… … guests typically check in for 1 week to several months. They [differ]( from traditional hotels in a couple of ways: - They have cheaper nightly rates - They come with kitchenettes - They swap posh amenities for things like laundry and mail services They’re also cheaper to operate With less guest turnover, hotels save on cleaning and staffing costs. And because guests frequently cook for themselves, they don’t need full-service, on-site restaurants and bars. Plus, they can weather a pandemic At the onset of the pandemic, extended stays were used by health care and military personnel. In 2020, revenue per available room fell 48% YoY for traditional hotels, but only 33% for extended stays. And now, experts [say]( the lodging once popular with business travelers is attracting remote workers and vacationers, who are into the autonomy, low contact, and [convenience]( they provide. In 2021, extended stays enjoyed an average occupancy rate of 73% [compared]( to 56% for hotels in general. Fun fact: Actor Richard Harris once said he lived in London’s The Savoy Hotel because “if you're paying the mortgage on a home, you can't ask the bank manager to fetch you a pint." He’s got a point. [Share on Facebook]( [Share on Twitter]( [Send as email to a friend](mailto:?subject=The%20Hustle%20wrote%20something%20I%20think%20you%27ll%20like...%0A&body=Extended+stay+hotels+are+a+surefire+investment%0Ahttps%3A%2F%2Fthehustle.co%2F02032022-Extended-stay-hotels%3Futm_campaign%3DYouTube%2BNetflix%26utm_content%3D02032022-Extended-stay-hotels%26utm_medium%3Demail%26utm_source%3Ddaily%0A%0AYou%20can%20subscribe%20with%20my%20link%20here%20to%20get%20the%20latest%20in%20tech%20and%20business%20daily:%0A [View on our website]( AROUND THE WEB ​​🎼 On this day: In 1959, musicians Buddy Holly, Ritchie Valens, and JP Richardson (AKA “The Big Bopper”) and pilot Roger Peterson were killed in a [plane crash](. The date would become known in history as “The Day the Music Died.” 💸 How to: A 2020 report found that Black female entrepreneurs typically raise far less than the US median average. So, here’s a Black woman’s [guide]( to raising capital. 🌳 Useful: You like trees, right? Well, this [search engine]( plants trees every time you use it! 🐟 That’s interesting: [Methuselah]( is a ~90-year-old lungfish who lives at the California Academy of Sciences. She’s one of the oldest aquarium fish in the world and, apparently, has “gourmet tastes.” 🗒 Haha: Use this site to send someone a “[big-ass message](.” 🦹‍♀ Aww: And now, [a cat]( that’s either a superhero or about to rob a bank. Tweet of the day [streaming meme] Source: [Twitter]( Tech Giveaway [prizes]( New Podcast: $5k Tech Giveaway Want a shot at one of the prizes above?* Here’s what you need to do: Step 1: [Enter here]( for a chance to win. Step 2: Follow The Hustle Daily Show on Apple / Spotify + send the magic referral link to your friends. Every friend that signs up through your link gives you 35 extra entries in the raffle (1 referral = 35 entries). Step 3: Do your embarrassing little ritual and check if you’re one of the 8 winners after February 9th! [Follow the Podcast →]( Prizes: Airpods Pro, Apple Watch Series 7, Fully Standing Desk, iPad Pro, Trends Lifetime Membership, iPhone 13, Macbook Air, Macbook Pro. *NO PURCHASE NECESSARY. Legal residents of the 48 contiguous United States or D.C. 21 years and older. Ends 2/9/22, 11:59 pm ET. To enter and for Official Rules, including odds, and prize descriptions, visit [(. Void where prohibited. How did you like today’s email? Refer friends. Help us grow. Get cool stuff 🤠Share The Hustle with your custom referral link: [ Your referral count: 0 Today's email was brought to you by [Trung Phan](, [Jacob Cohen](, [Juliet Bennett Rylah](, [Rob Litterst](. Editing by: Mark “Google me” Dent. [PODCAST]( [JOBS]( [CONTACT US](mailto:news@thehustle.co) [Facebook]( [Youtube]( [Instagram]( [Trends]( 25 FIRST ST. 2ND FLOOR, CAMBRIDGE, MA 02141, UNITED STATES  +1 888 482 7768 Never want to hear from us again? Break our hearts and [unsubscribe](list=thehustle). [The Hustle](