YouTube has been the go-to for people of all ages to stream content online. Netflix is just like the new rich kid on the street and the one raking in higher revenues. But not for long.
Last week, both companies announced their earnings for the first quarter. While Netflix generated $7.16 billion in revenue, YouTube brought in a revenue of $6.01 billion FROM ADVERTISING, almost 85% of Netflix’s.
While Netflix viewers tune in for 400 million hours daily, YouTube users watch one billion hours of video. That is about 2.5x more! Also, While Netflix spends tens of billions for its content(it estimates $17 billion for 2021), YouTube doesn’t spend a dime!
If its current growth trajectory continues, YouTube will book between $29 billion and $30 billion in revenue this year. Netflix is expected to report $29.7 billion in revenue for 2021, according to an average of estimates from analysts polled by Refinitiv.
In Alphabet’s earnings call, YouTube was mentioned a whopping 33 times! It seems to be justified considering YouTube had a growth rate of 49% YoY.