Markets

A very interesting presentation by Maria Rua Aguete, Omdia's Senior Research Director, Media & Entertainment, held during MIP London (February 23-27, 2'25) revealed that Netflix is set to surpass YouTube in video revenue in 2025

As of 2024, YouTube remains ahead, generating $42.5 billion, while Netflix recorded $39.2 billion. However, in 2025, Netflix is projected to overtake YouTube, reaching $46.2 billion, fueled by $43.2 billion from subscriptions and $3.2 billion from advertising. YouTube, meanwhile, is expected to generate $45.6 billion, with $36 billion from advertising and $9.6 billion from YouTube Premium.

A Tale of Two Streaming Giants: Revenue Models and Reach

Netflix and YouTube derive their revenues in fundamentally different ways:

• Netflix will have more than 340 million paying subscribers in 2025, with over 600 million users benefiting from its content.
• YouTube, however, reaches more than 2 billion users globally, leveraging its massive scale through advertising and premium subscriptions.

“In markets like the U.S. and the UK, there is significant overlap between audiences," said Maria Rua Aguete, Senior Research Director at Omdia. "In the U.S., 57% of YouTube users are also Netflix subscribers, while in the UK, that number rises to 67%. This dynamic presents opportunities for both platforms."

Competition or Collaboration?

While often positioned as rivals, YouTube and Netflix increasingly collaborate rather than compete. "I see more collaboration than competition between YouTube, Netflix, and other industry players," Rua Aguete stated. "Streaming services, broadcasters, and platforms are working together through marketing partnerships, content distribution, and advertising deals."
A key example is Netflix's use of YouTubers to promote Squid Game, tapping into influencer-driven marketing to attract new subscribers. Meanwhile, YouTube is proving to be a powerful platform for premium content, outperforming FAST (Free Ad-Supported TV) services.
“At the end of 2024, YouTube generated seven times more revenue than FAST platforms—$42.5 billion versus $6 billion,” Rua Aguete explained. “Major studios are recognizing this potential. Warner Bros., for instance, recently released 37 full-length movies for free on YouTube, and we expect to see more partnerships of this nature.”

The Future of Streaming & Advertising

Looking ahead, YouTube is making a push for more TV-like content. "Large players can turn this situation to their advantage by entering favorable ad-share agreements or even selling some of the associated sponsorship and video directly," Rua Aguete said.
She also emphasized the role of YouTubers in cinema recovery, with influencer-driven promotion playing an increasing role in movie marketing strategies.

Another key trend is the shift in YouTube consumption to Connected TV. "Viewers are watching YouTube on the big screen more than ever before," Rua Aguete noted. "This changes the advertising game, making YouTube an even bigger player in premium video."

As streaming, advertising, and audience engagement continue to evolve, these insights highlight the growing interplay between digital platforms, content creators, and traditional media.