Problems for Netflix as YouTube is all set to dethrone the streaming giant

Netflix has been the go to app for people when it comes to online video streaming. Be it movies, tv shows or documentaries, Netflix has a wide catalog for people to choose from. And the best part about that is you can watch and experience the culture of different regions as you watch movies and shows of different regions.

Since 2010, Netflix has been making strides in the streaming world with almost every kind of movie and show available on it. Their revenue started to double up every year since their release. But the numbers have started to go down as many other apps and competitors have entered the market. Amazon Prime, HBO Max, Hulu and many others have started their journey and are gaining subscribers day by day.

You has been one of the apps that is somewhat threatening Netflix in terms of revenue and growth, because YouTube has grown a lot in the past couple of years. According to an analysis, YouTube’s Growth percentage for last year was 43% whereas Netflix was sitting pretty at 16%.

We all know that YouTube has been around for a long time, and it has now started to see a huge growth in terms of its user base as it is free for all whereas Netflix is a “Subscriber Only” app. It is also being predicted that 2022 might be the year when YouTube finally manages to surpass the total revenue of Netflix in a calendar year.

Although Netflix generated a revenue of $7.5 billion compared to YouTube’s $7.2 billion, there is a gap there. But with the current situation of YouTube with its user count growing day by day and Netflix losing its subscribers, we think YouTube will be able to go past them this year.

Neil Campling, an analyst at Mirabaud Equity research said that if YouTube was a standalone company, it might actually have been worth $600 to $700 billion as compared to Netflix which has a worth of $265 billion.
So what makes YouTube different from Netflix? Well YouTube with its ”Live Streaming” feature created a stir for them with people streaming games and even concerts on the app. In 2020, Travis Scott held a concert inside a game known as “Fortnite”. Around 140 million people watched that live stream which was being done by a content creator on YouTube.

Following that, Mr. Beast, another known content creator, recreated the Squid Games show and made a Squid Games of his own. His videos got up to 142 million views which was his highest number in terms of views.

Even if Netflix loses this battle with YouTube, it won’t matter that much to them as they belong to an elite category with strong ties with Hollywood and Celebrities. But they would have to spend some serious amount of money as keeping up with competitions is not easy. Their estimated expenditures could vary from $14 billion up to $19 billion by 2025.

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