YouTube vs. Netflix

I was a Netflix customer for years but canceled it last month because DH monopolizes the TV with YouTube. Apparently we are not the only ones.

The Streaming Wars Come Down to 2: YouTube v. Netflix

The two giant video companies have far different strategies, but the same goal: controlling your TV set.

By John Koblin, The New York Times, July 12, 2025

For many years, Netflix executives bristled at the notion that the company really had a rival. Not Hollywood powerhouses like Disney, nor tech giants like Amazon. Instead, Reed Hastings, the company’s co-founder, insisted at one point that Netflix competed with people’s desire to socialize, or to go to sleep.

But there’s no hiding from YouTube.

Netflix and YouTube are increasingly locked in a fierce battle for control over the television set, a rivalry that even Netflix’s executives can no longer deny…

The two accounted for 20 percent of all television viewing time in the United States in May — 12.5 percent for YouTube, 7.5 percent for Netflix, according to Nielsen. …

Both companies are competing from a position of strength. Netflix’s revenue in 2024 reached $39 billion, and it has more than 300 million global subscribers, more than any other streaming service. The company is also hugely profitable: Netflix had more than $10 billion in operating income last year.

YouTube, which is owned by Google, had revenue of $54 billion last year. The only media company with more was Disney. … [end quote]

Netflix is one of the “Magnificent Seven” that drove the SPX higher. It has a P/E ratio of 59.

Since YouTube is owned by Google it isn’t listed separately.

Netflix produces a lot of quality programming while YouTube is a pastiche that ranges from the ridiculous to the sublime. DH spends hours watching live court feeds and programs about repairing oscilloscopes which I can’t stand. (I bought him blue-tooth headphones so I don’t have to listen.) I watch YouTube for exercise videos, instructional videos and educational videos (such as history).

It’s possible that YouTube will chip away at Netflix enough to reduce its subscriber base significantly which would eat away at one of the 7 legs supporting the SPX.
Wendy

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I watch Youtube for fishing video’s and car maintenance and restoring video’s. I also watch investing video’s on Youtube. It is the best invention since the Chilton manual.

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While strengthening another of the legs, GOOG.

DB2

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Speaking of Netflix, the boss and I were watching a movie the other night on Netflix and smack dab in the big middle of the movie here comes a “Blue Alert”. Shut the movie down and knocked me out of Netflix. Had log back on and find our place in the movie.

Seems some dude shot (not killed) a peace officer five (5) days earlier and the were looking for him somewhere in West Texas about 700 miles away from us.

Man we killed those Amber Alerts on our cell phones 10 or 20 years ago when one woke us up at 2:00 am. If you have never heard an Amber Alert they are at least 10 times louder than any ringer you can put on your phone.

Now I guess we have to figure out how to turn off Amber Alerts on Netflix.

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In Q1 2025…
Netflix has revenue of $10.54 billion
Youtube had revenue of $8.9 billion
Google ex-Youtube had revenue of $81.3 billion

Just an FYI.

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Youtube is literally the greatest thing ever created for DIY.

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It’s like the invention of the printing press. Dissemination of practical knowledge without limit to people living anywhere in the world with an internet connection. Who knows where this will lead in a hundred years?

What I love most about YouTube is the generous impulse of people to share knowledge freely. In my opinion, this is one of the finest human qualities.

Wendy

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And for listening to music, obscure old tracks, favorites, international…

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Netflix weight is 1.07% (#14) of the S&P500.
Youtube is Google, and Google weight is 3.52% (#5) of the S&P500.

Even if Youtube takes business from Netflix, it’s all in the S&P500, and it’s all in the top-15 (or so) of the S&P500.