Currently, Netflix is on everyone’s lips. But it’s not the only streaming media service. According to Tom’s Guide, the list of the best streaming services now is led by HBO Max. Netflix is in the second position. Not surprisingly, Disney Plus ranks third. Well, you can get acquainted with the list by following the link. However, everything could change soon. As Business insider quoted Mirabaud Equity Research, the rapidly growing YouTube ought to replace Netflix in 2022 and become the largest streaming media service provider.
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We understand that YouTube and Netflix have only a few things in common. Moreover, if YouTube is a social media platform, Netflix is specialized in quite different kinds of services. But YouTube’s emphasis on video content makes it a strong competitor to streaming providers including Netflix. Mirabaud Equity Research analyst Neil Campling said that although Netflix has long been the leader in the field in terms of revenue. But YouTube’s continued growth is expected to surpass Netflix this year.
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According to the research firm, YouTube’s third-quarter advertising revenue was US$7.2 billion, a year-on-year increase of 43%. Moreover, Netflix’s Q3 revenue was US$7.5 billion, a year-on-year increase of 16%.
More interestingly, the number of YouTube users has grown exponentially. At the same time, Netflix has earned revenue with its paid subscription model. But as YouTube continues to grow, Camplin said that it will “soon surpass Netflix and become the new king of streaming media.” He added in a report to investors that if YouTube were an independent company, its value would be between US$600 billion and US$700 billion. As a reference, the current market value of Netflix is $265 billion.
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Part of the reason for YouTube’s rapid growth may be that it can provide live streaming services that Netflix does not have. For instance, as Mirabaud Equity Research stated, rapper Travis Scott’s concert on the video game “Fortnite” in 2020 was also live simultaneously on YouTube. More than 140 million viewers have watched it. Another example, at the end of last year, more than 142 million people watched YouTube creator MrBeast’s re-produced Netflix “Squid Game” in 8 days. By the way, this is the most-watched show in history.
However, we should note that even if Netflix lags behind YouTube in revenue, it will still have numerous advantages. We mean close connections with Hollywood’s top talent and dozens of Oscar nominations first. However, the cost of maintaining this level of competition in the content field is becoming more and more expensive. Competitors with strong financial resources such as Disney, Amazon, and Apple have invested heavily in this field. As for Netflix, it should invest nearly US$14 billion in content this year, and by 2025, this number may grow to US$19 billion.