For some time, media observers have engaged in debates over which company has triumphed in the so-called “streaming wars.” Most analysts today concede that Netflix has emerged as the victor compared to its rivals. However, one service that often goes unnoticed, according to one media analyst, doesn’t fit neatly into the subscription video on-demand (SVOD) category dominated by Netflix: YouTube. In terms of consumption, YouTube significantly outpaces Netflix. According to Nielsen’s “The Gauge” metric, which tracks television streaming consumption by service, YouTube (excluding YouTube TV) captured about 41% more streaming viewership than Netflix in February.
During an appearance on John Ourand’s The Varsity podcast, media analyst Michael Nathanson of the firm MoffettNathanson declared, “YouTube has won the streaming wars.” Nathanson noted, “Streaming, defined larger than subscription video on-demand, right?… YouTube is something like 24% of all consumption last year on connected TVs, was on YouTube or YouTube TV. So I think it starts with YouTube is what I’d say…Netflix is second, and probably Amazon, Disney third and fourth. We can’t ignore YouTube here.” He acknowledged that although YouTube is not seen as a traditional sports rights bidder, it has significant potential to disrupt the market.
Currently, Google/YouTube has been selective regarding its involvement in live sports rights, having only purchased the NFL Sunday Ticket package, which grants subscribers access to out-of-market Sunday afternoon games. This package has enhanced YouTube’s cable alternative, YouTube TV, making it the largest virtual pay TV service in the country with around 10 million subscribers. However, because of its cautious approach towards acquiring live sports rights, YouTube has largely remained below the radar as a potential sports media disruptor. In contrast, its peers—namely Netflix and Amazon—have been actively seeking sports rights. Amazon holds the NFL’s Thursday Night Football and will become a significant NBA partner next season. Netflix has also been strategic, airing NFL games on Christmas Day and recently acquiring rights for the next two FIFA Women’s World Cups, in addition to broadcasting popular events like the Mike Tyson-Jake Paul fight.
At its core, YouTube traditionally relies on user-generated content to attract advertisers, with a portion of that revenue going to creators, rather than paying for content directly. Acquiring live sports rights—often costing billions—would represent a significant shift in YouTube’s content strategy. Nevertheless, this does not mean the company should be dismissed as a contender for live sports rights. With substantial financial resources at its disposal, YouTube could make a significant move if it aligns with its broader strategic goals.
