The COVID-19 Pandemic changed the game for YouTube, Netflix, and the entire streaming industry. As people were forced into their homes, streaming became the primary outlet for entertainment and connectivity. YouTube has become the go-to site for everything from all the new major entertainment media (trailers, etc.), to the video record of every major societal event, to the sea of personalities and programming that YouTube has housed under its roof through partnership and licensing deals.
According to Bloomberg YouTube generated around $7 billion in ad sales during the most recent quarter - which is an increase of 84% over last year, and nearly double the earnings of this time in 2019, before the pandemic. It's estimated that YouTube's ad sales model will finally outpace Netflix's subscription model in the next year.
Netflix remains the biggest of the TV/Movie entertainment streaming services, as 2020 and the pandemic helped it jump in service and subscriptions. That said, Disney has done well capturing some of the markets with its Disney+ service as well as Hulu; Warner Bros. has gained much better traction with its HBO Max service; while Amazon has been quietly but steadily creeping up and building big brands through Prime Video.
Meanwhile, Netflix has reported a subscriber loss in the US Market in 2021 - the first dip in the streaming services users since before the pandemic. In order to gain new pieces of the market, Netflix has announced plans to start offering video games to users. In terms of its overall business logic for the immediate future, Netflix has stated the following.
"Our belief is that as we steadily improve our service to better please our members, this will lead to continued growth in our membership base, ARM, revenue, operating margin and profit dollars."
How do you feel about YouTube becoming the biggest streaming service?