YouTube is Pushing Forward Netflix’s Streaming War Meets Formidable Enemies

Google‘s parent company Alphabet recently announced its brilliant second-quarter financial report, the most eye-catching of which is its YouTube advertising revenue of up to 7 billion US dollars, close to Netflix 2.34 billion US dollars in revenue in the second quarter , To become a competitor not to be underestimated in the streaming media war.

YouTube’s advertising revenue in the last quarter grew 83% to 7 billion U.S. dollars over the same period last year. In contrast, Netflix’s revenue grew 19.4% to 7.34 billion U.S. dollars in the same period. In addition, almost all of Netflix’s revenue comes from subscriptions, while Alphabet refers to reporting YouTube’s advertising revenue, not including YouTube TV and YouTube Premium revenue.

Alphabet‘s financial report pointed out that about 120 million people watched YouTube on TV last month, an increase from 100 million per month last year. Google Chief of Commerce Philipp Schindler said on a conference call for earnings reports that consumers who watch YouTube on TV are growing the fastest.

This is the strongest message revealed so far, indicating that YouTube is cannibalizing users of Netflix (with 209 million users as of the end of June) and Disney+ (with 103.6 million users as of April 3).

Nielsen, a market research agency, said that compared with other video streaming platforms, YouTube and Netflix are watched the most. According to statistics, these two media account for about 6% of the public’s TV watching time. But interestingly, according to a research report published by the agency last month, there are still more people watching traditional TV programs than streaming media.

In addition, YouTube’s competitor TikTok is also growing, especially in the era of short films, TikTok is the leader of the trend. Although YouTube launched the YouTube Shorts service to compete with it, Alphabet did not announce the number of users, only that the number of views jumped from 6.5 billion daily views in March to 15 billion at the end of the second quarter.

Nielsen’s report last month showed that with more and more people joining the ranks of watching audio-visual streaming platforms, there is still a lot of room for growth in media in this field. Currently, streaming media audiences only account for about 1/4 of the overall audience. Due to the early launch of YouTube, it is expected to become the winner of the video streaming war.