The Diary Game 30/04/2021. How Youtube and Netflix are Fighting

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YouTube is preparing to fight Netflix in terms of revenue, and this is also the merit of the pandemic. The pandemic kept people in their homes and made them consume a lot of online content. They obviously took advantage of the video and audio streaming platforms, led by Netflix. The platform was preferred for movies and series, but for other content, people went to YouTube. Many artists left without concerts and offline activity went to YouTube, and this can be seen in the proceeds. The platform is preparing to announce annual revenues almost similar to those obtained by Netflix. Which is a huge step.

YouTube success, swollen by the pandemic

Google's platform is without a doubt the largest video platform in the world. But the income was not really colossal. It's just that things have changed with the pandemic. If YouTube continues to grow at the same rate, then it could equal Netflix in terms of revenue at the end of the year. After the first three months, the balance for the Alphabet group platform looks something like this: $ 6 billion in advertising revenue (compared to $ 4 billion, the same period last year) - an increase of 49%. It's a double-digit growth rate from Netflix - which had a revenue growth of just 24%, quarter-over-quarter. If it keeps its growth line at the same pace until the end of the year, then YouTube could reach $ 30 billion in revenue year-round. For 2021, Netflix expects, according to estimates made by specialists, revenues of $ 29.7 billion. So fixed there, even less than the platform owned by Google.

Hand in hand, against classic television

A recent Pew report shows that YouTube has been by far the big winner of the pandemic: US adult usage rate has risen from 73% in 2019 to 83% in 2021. The two platforms have different businesses, it's true: Netflix earns from subscriptions, while YouTube relies on ads (although it also has various subscription plans, this data is not made public and is irrelevant in the overall context). It's just that YouTube has the hours spent by users on the platform. Worldwide, YouTube users spend an average of 1 billion hours a day on the platform. On Netflix, the same average is somewhere around 400 million hours.
However, the two companies have something extremely important in common, which ensures their growth in the future: they steal from the traditional television audience. And that only helps them continue to thrive.