As Netflix and Youtube emerged as the leaders of streaming, Netflix co-CEO Ted Sarandos noted the platforms “feed each other very well” despite their inherit competition.
“We clearly do compete with YouTube in certain segments of their business, and we certainly compete with them for time and attention, but our services also feed each other really well,” Sarandos said during Netflix’s Thursday earnings call, adding that viewership for the platform’s content dominate against its streaming competitors. “Our teasers and trailers and behind-the-scenes clips and all those kind of things are incredibly popular on YouTube.”
Fresh off earning the most Emmy nominations when compared to its network and streaming counterparts with 107 nods, Sarandos said the streamer is less concerned with attracting viewership away from YouTube, and is more preoccupied with pulling in viewers from other streamers and linear networks it doesn’t currently.
“What we’re focused on here is … on that other 80% of total TV time that isn’t going to either us or YouTube,” Sarandos said. “That share of TV time grew against linear, and as linear continues to give, I think there’s a lot of opportunity for us to grow as long as we keep executing well.”
Co-CEO Greg Peters echoed Sarandos, noting how Netflix “fulfills an important and differentiated need” for “spectacle movies and TV shows,” pointing to fandoms for series like “Wednesday,” “Outer Banks,” “Stranger Things” and “Heartstopper,” which appeal to younger generations.
On the flip side, Peters added that Netflix serves an important need for “creators who want partners that can share in the risk that’s inherent in bringing those stories to life,” which he says can’t exist in the same way for YouTube.
“It’s really hard to imagine how that kind of big creative bet would happen and be possible within YouTube’s model,” Peter said. “It is very competitive out there, and we also feel confident that our model works. It works well for our consumers, it works well for creators, and it works well for our business, and helps us generate significant operating margin.”
More to come …
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