YouTube is reportedly trying to outbid Netflix for creators
What's the story
YouTube is said to be offering lucrative deals to some of its top creators in a bid to keep their content exclusive on the platform. The move comes as Netflix intensifies its efforts to attract popular internet personalities and shows onto its streaming service. According to Bloomberg, the proposed arrangements would involve financial incentives for creators who agree to keep their content exclusively on YouTube for a certain period.
Competitive edge
Financial incentives and early talks
The financial incentives offered by YouTube could either be direct funding for programs or a larger share of major brand deals.
However, no final agreements have been announced yet as the talks are still in their early stages.
This strategy comes as Netflix aggressively pursues creator-led content and video podcasts, hoping to bring internet personalities with established audiences onto its platform.
Market shift
Potential downsides for creators working with both platforms
Netflix's strategy of licensing or commissioning content from established internet creators has made some of YouTube's biggest stars highly sought after.
For those who choose to work with Netflix while continuing to post the same content on YouTube, there could be potential downsides.
They may not be included in certain YouTube marketing campaigns and events, or miss out on specific brand-related opportunities.
Platform rivalry
YouTube's warning to creators
YouTube has warned creators who sign deals with Netflix about possible consequences.
Those who post on both platforms could be left out of YouTube marketing campaigns or events, and may not get a cut from certain major brand campaigns.
The platform is worried that simultaneous distribution could hurt viewership on YouTube and indicate that a creator no longer considers it their primary distribution outlet.
Industry dynamics
Ongoing negotiations and Netflix's creator partnerships
YouTube is said to be close to finalizing deals with several partners, although no agreements have been confirmed yet.
Meanwhile, Netflix has already paid creators like Alan Chikin Chow and Nick DiGiovanni to post their videos on both platforms simultaneously.
The streaming giant is also in talks with dozens of other creators, channels, and programs such as celebrity talk show Hot Ones.
Platform position
YouTube's expanding presence and viewership dominance
YouTube has argued that creators who post content on both platforms at the same time could dilute their audience and advertising value on YouTube.
The platform has also expanded its presence on television screens, where it now accounts for more viewership than any other service.
It has also pursued television advertising and secured rights to major live events such as the Academy Awards and National Football League games.