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> Google makes 6% of its revenue throgh Youtube, so saying 98% is from ads is wrong.

Doesn't Google make money on Youtube by showing ads?

YouTube also sells and rents movies.

I highly doubt even .5% of their revenue comes from that.

well, afaik, youtube makes 100% of its money from ads

Not that it really matters, but they do rent movies

https://www.youtube.com/user/movies

Google has ad revenue sources that are not Youtube. Like you said, Youtube represents only a small part of its revenue stream, but this doesn't mean its revenue stream is not dominated by selling ads.