YouTube offers creators millions not to work with Netflix
AI generated
LOS ANGELES – YouTube is offering millions of dollars to popular channels if they upload their videos to the site exclusively for a certain period of time, in an effort to halt Netflix Inc’s pursuit of its biggest stars, according to people familiar with the conversations.
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they → offer → conversations
The payment would come in a couple of different forms.
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payment → come → forms
YouTube has discussed directly financing some programmes, and it has also offered to allot a portion of major brand deals to creators.
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it → discuss → creators
Though YouTube hasn’t finalised deals with any creators, it is close to an agreement with several partners, said the people, who declined to be identified because the negotiations are sensitive and ongoing.
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negotiations → finalise → partners
Creators who do sign deals with Netflix face consequences, YouTube has said, according to the people.
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YouTube → sign → people
YouTube will be less likely to feature them in marketing campaigns or at events if they release videos on Netflix at the same time.
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they → feature → time
YouTube would also exclude those creators from collecting a share of proceeds from some major brand campaigns.
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YouTube → exclude → campaigns
Netflix has been pursuing agreements with dozens of prominent YouTubers, paying creators such as Alan Chikin Chow and Nick DiGiovanni to post their videos on YouTube and Netflix concurrently.
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Netflix → pursue → YouTube
The company remains in active conversations with dozens of other creators, channels and programmes, such as Hot Ones, a celebrity talk show.
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company → remain → Ones
The Netflix deals appeal to creators because they are a way to get paid millions of additional dollars for videos they are already making and expose their programming to new viewers.
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they → pay → viewers
Netflix has more than 325 million subscribers.
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Netflix → have → subscribers
Yet YouTube has told creators cross-posting on its platform and Netflix hurts viewership on YouTube and conveys the idea that channels are deprioritising the streaming platform as their primary distribution outlet.
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channels → tell → outlet
Some creators have already decided not to work with Netflix.
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creators → decide → Netflix
The service requires them to deliver videos days in advance, which is not how many creators operate.
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creators → require → advance
It has also asked creators to remove certain brand sponsorships from their videos.
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It → ask → videos
YouTube and Netflix have been the leaders in streaming video for the last 20 years.
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YouTube → stream → years
For most of that time, they have been friendly competitors largely operating in separate universes.
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they → operate → universes
Netflix was the king of subscription streaming, focused on more expensive, Hollywood-style films and TV shows.
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Netflix → focus → films
YouTube was the undisputed leader in user-generated content, birthing a new generation of stars that people primarily watched on mobile devices.
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people → generate → devices
Its past efforts to fund original programming failed to produce many hit programmes.
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efforts → fund → programmes
One of those shows, Cobra Kai, went on to be a big hit for Netflix.
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One → go → Netflix
Yet the line between the two sites has blurred in recent years.
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line → blur → years
YouTube prioritised getting people to watch on TV and now accounts for more viewership on those devices than any other service.
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people → prioritise → service
It has chased TV advertising dollars and taken the rights to major live events like the Academy Awards and the National Football League.
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It → chase → Awards
Netflix, which has long promoted its titles on YouTube, licensed the rights to popular shows like CoComelon and Ms. Rachel.
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which → promote → CoComelon
It sees YouTube stars as a way to draw in younger viewers and boost the amount of time its users spend on Netflix.
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users → see → Netflix
The competition has intensified over the past year as Netflix has stepped up its pursuit of YouTube’s most popular channels.
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Netflix → intensify → channels
YouTube has weighed whether or not to respond.
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YouTube → weigh → ?
Chief executive officer Neal Mohan has long said that creators who do deals with competitors, be they Instagram or Amazon Prime Video, tend to drive viewers back to YouTube.
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they → say → YouTube
Few of these creators are leaving YouTube, which is still their primary distribution outlet.
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which → leave → YouTube
Funding any individual channel also risks aggravating the thousands of channels that don’t get any cash.
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that → fund → cash
YouTube still doesn’t want to serve as a studio for creators, which would involve funding and providing creative direction.
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which → want → direction
But in recent weeks, Mohan and his team have decided that the steady stream of creators now posting on YouTube and Netflix at the same time was a problem that needed to be addressed.
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that → decide → time
It’s harder to sell advertisers on the appeal and value of a video on YouTube if it is also available on Netflix.
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it → ’ → Netflix
This isn’t the first time YouTube has responded to competitors in this manner.
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YouTube → respond → manner
It offered money to creators who didn’t do deals with Vessel, a start-up co-founded and formerly led by Jason Kilar that was trying to get social media creators to post on its app before YouTube.
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creators → offer → YouTube
YouTube also created a product for short-form video to compete with TikTok.
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YouTube → create → TikTok
