Hajra Naz
Netflix is a global company that offers streaming services with a large selection of movies, TV series, and recently created series. The business was founded in 1997 and started out renting out DVDs before switching to streaming in the 2000s. At the moment, it is a major force in the technology and entertainment sectors. It is a subscription-based application, and is now considering an expansion to selling advertisements.
Netflix On Target To Beat YouTube
According to research from Omdia presented at MIP TV London 2025, Netflix is expected to exceed YouTube when it comes to total revenue generated from videos for the first time ever in 2025.
In 2024, Netflix will fall behind YouTube, which leads the market with a staggering $42.5 billion revenue compared to Netflix’s revenue of $39.2 billion. However, predictions that were made for 2025 suggest that Netflix will surpass its rivals with revenue of $46.2 billion, which consists of $43.2 billion from subscriptions alongside $3.2 billion Netflix gets from advertisements.
On the other hand, YouTube is forecasted to earn approximately $ 45.6 billion, where $36 billion comes from advertisements and $9.6 billion comes from YouTube premium.
Dissimilar Revenue Models
Over time, YouTube and Netflix have developed different strategies in their business that all of them chase specifically. Netflix mostly relies on their growing customer base, expected to reach more than 600 million total viewers and 340 million paying subscribers by 2025. On the other hand, YouTube gains revenue through broader coverage by over 2 billion users globally, thanks to Ads and YouTube premium subscriptions.
As streaming competition heats up, Netflix’s expansion into ad-supported streaming, along with its strong subscription growth, is shifting the balance in digital video revenue.
Audience Overlap and Market Trends
Both sites have a sizable fan base in common, according to Maria Rua Aguete, Senior Research Director at Omdia. The percentage of YouTube users who also have a Netflix subscription is 57% in the United States and 67% in the United Kingdom. Both businesses can benefit strategically from this overlap.
While often viewed as competitors, Netflix and YouTube are increasingly collaborating. “I see more collaboration than competition between YouTube, Netflix, and other industry players,” said Rua Aguete. “Streaming services, broadcasters, and platforms are forming marketing partnerships, content distribution deals, and advertising collaborations.”
Growing Role of YouTube in Premium Content
The usage of YouTube influencers by Netflix to market popular shows like Squid Game is one instance of this partnership. In consequence, YouTube is surpassing Free Ad-Supported TV (FAST) offerings and establishing itself as a premium content platform.
Rua Aguete explained.
“At the end of 2024, YouTube generated seven times more revenue than FAST platforms, earning $42.5 billion compared to $6 billion,”.
Studios are taking notice, with Warner Bros. recently releasing 37 full-length movies for free on YouTube—a trend that is expected to continue.
YouTube’s Shift Toward TV-Like Content
YouTube is increasingly positioning itself as a TV alternative. Rua Aguete noted.
“Large players can leverage this shift by securing favorable ad-share agreements or even selling sponsorship and video inventory directly,”
She also emphasized how YouTube influencers are playing a bigger role in cinema marketing, helping drive audiences back to theaters.
Rise of YouTube on Connected TVs
Another major shift is YouTube’s growing dominance on Connected TVs (CTVs). “Viewers are watching YouTube on the big screen more than ever before,” Rua Aguete said. “This transforms YouTube’s advertising potential, making it an even bigger player in premium video.”
As digital streaming continues to evolve, Netflix’s rising revenue and YouTube’s shift to premium TV-like content signal a new era in the competition between these two video giants.
