YouTube, the world's largest video platform, posted slower growth in advertising revenue, missing market expectations. Paid subscriptions and its share of TV viewing rose, underscoring diverging trends between its advertising and subscription businesses.

Business Insider reported on Oct. 28 that Alphabet, Google's parent, posted third-quarter YouTube advertising revenue of $11.2 billion, up 9.2 percent from a year earlier. That was about $223 million below the market estimate of $11.43 billion. The growth rate slowed to 9.2 percent from 13 percent in the second quarter.

Unlike YouTube, Alphabet's overall business continued to grow. Third-quarter revenue rose 25 percent from a year earlier to $127.6 billion. Google Cloud revenue surged 103 percent to $30.7 billion.

YouTube's paid subscription business also expanded. Global subscribers to YouTube Music and Premium, including free trial users, topped 150 million. That was an increase of more than 25 million from 125 million in March last year.

In the TV market, it has maintained an overwhelming influence. Nielsen data showed YouTube accounted for 15.8 percent of total U.S. TV viewing time in August, more than double Netflix's 7.7 percent.

Google Chief Business Officer Philipp Schindler (필립 쉰들러) said more than one-third of YouTube's third-quarter advertising revenue came from living-room TV viewing.

Rivals are also adjusting their strategies. Netflix cut its advertising revenue forecast for this year to $2.7 billion from $3.0 billion, citing delays in launching ad products. Earlier this month, it cut about 1,000 jobs. Instagram is testing a new feature that supports landscape videos up to 90 minutes, moving to target long-form content and the TV market.

Ross Benes (로스 베네스), a senior analyst at EMARKETER, said the streaming industry is chasing YouTube and Instagram is also changing its strategy to match YouTube's success.

YouTube's ad revenue growth slowed, but it is maintaining a competitive edge by expanding its influence in subscriptions and the TV viewing market.