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| YouTube has proven its power over Netflix in the streaming wars |
The YouTube platform is quite different from Netflix in that YouTube is free for everyone and usually contains no graphics, but content created by the creators themselves, usually independently.
Although Netflix's profitability rests on offering paid subscriptions at relatively high prices, YouTube has managed to generate similar revenue, making YouTube a very strong contender in the streaming wars.
The broadcast war means competition between companies that provide content streaming services. Netflix is the most well-known company in this regard and can rival many companies such as Disney Plus, HBO, and Prime Video.
YouTube is a fierce competitor in the broadcast war
Alphabet, the parent company of Google and YouTube, has announced annual sales. As you might expect, this American giant has generated massive revenues. One of the best-selling projects in his report was YouTube, which alone brought in $7 billion in revenue.
This income does not represent the total income, on the contrary, it is only advertising income. Google said revenue is expected to grow 83% year over year.
On the other hand, Netflix generates huge revenue. The broadcasting giant's total sales are estimated at $7.34 billion. Compared to the previous quarter, these sales were said to have increased by 19.4%.
These results show us how strong the growth of Google's streaming service has been as it has grown at four times the growth of Netflix!
The most interesting point is advertising revenue. That's only $7 billion in advertising revenue because Google doesn't disclose revenue from paid services from YouTube Premium, YouTube Music, and YouTube TV.
We can assume that the revenue from these services is greater than the revenue difference between the two companies. This means that even though YouTube is a free platform and only uses subscriptions for limited services and does not offer exclusive content, it has outperformed Netflix.
Google also announced the growth rate of its video TV platform. He said 120 million users around the world use YouTube on TV. For comparison: last year there were 100 million users.
Of course, there are major differences between the Netflix and Google platforms. However, the latter has managed to attract a large number of users and bring in high income. Although there was no art library like its competition, it did.