tech
YouTube offers creators millions to not work With Netflix
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.
TL;DR
- YouTube is offering substantial payments to popular channels for exclusive content uploads.
- The goal is to prevent Netflix from signing away YouTube's biggest stars.
- Payments could involve direct financing or a share of brand deal proceeds.
- Creators signing with Netflix face potential penalties from YouTube, like reduced marketing support.
- Netflix is actively pursuing deals with numerous prominent YouTubers to expand its content offerings.
- Netflix deals offer creators millions in additional income and access to Netflix's large subscriber base.
- YouTube argues that cross-posting on Netflix negatively impacts its viewership and brand perception.
- Some creators have declined Netflix deals due to requirements like early video delivery and restrictions on brand sponsorships.
- The competition between YouTube and Netflix, once friendly competitors, has intensified as both platforms blur lines between user-generated content and professional productions.
- YouTube's previous attempts at original programming were not highly successful, while Netflix has licensed popular shows like CoComelon.
- YouTube's CEO, Neal Mohan, has historically believed creators working with competitors ultimately drive viewers back to YouTube, but the current trend of simultaneous posting is seen as a problem.
- YouTube has previously used financial incentives to counter competitors, such as its response to the startup Vessel.