- YouTube leads in ad revenue and youth viewership.
- YouTube pays creators over $70B and wants them to optimize for TV.
- With viewing habits changing, YouTube may prove the more formidable foe to studios.
While Netflix enjoys streaming dominance now, YouTube may prove to be a bigger long-term threat to traditional Hollywood. With over 260 million subscribers, Netflix bested top rival Disney+ by large margins last quarter. However, by overall viewing time and ad revenue, YouTube already leads.
YouTube edging out Netflix TV on watch time
YouTube accounted for 8.6% of TV watch time in January, according to Nielsen, edging out Netflix’s 7.9%. It also reported $9.2 billion in Q4 ad revenue, dwarfing Netflix’s nascent ad business.
Critically, YouTube is winning over younger generations who prefer user-generated and interactive video. One analyst noted Netflix faces risk as “kids watch MrBeast on YouTube instead of ‘The Crown’ on Netflix.”
Aiming for creators to optimize TV viewers
YouTube built an advertising and creator-funded content model without relying on expensive Hollywood productions. It paid creators over $70 billion in the past three years. New YouTube CEO Neal Mohan now wants creators to optimize for TV viewing.
YouTube’s AI investments and open platform give it an edge.
Youtube as “the more formidable foe”
Between ad revenue and shifting viewing habits, YouTube may disrupt Hollywood more than the company that made binge-watching a thing.
Traditional studios should keep a close eye on YouTube as the more formidable foe.
