YouTube is offering select creators millions of dollars to keep their videos exclusively on the platform, as it moves to counter Netflix’s growing push to acquire content from some of its biggest online stars.
Bloomberg on Thursday reported that YouTube has begun offering creators “financial incentives to refrain from working with Netflix,” as the streaming company expands its efforts to bring creator-driven content to its platform.
The outreach marks a significant escalation in the competition between the two platforms for top creator talent.
According to Business Insider also, two people familiar with YouTube’s efforts said the platform had begun “exclusivity talks with a handful of creators, with the terms varying from one creator to another.”
One of the sources said YouTube had approached a creator with a verbal offer “in the millions” in exchange for posting exclusively on YouTube for a specified period.
The person said discussions had not yet reached the stage of finalising the details.
Business Insider also reported that YouTube had not set a deadline for completing the deals.
The platform’s reported push comes as Netflix has stepped up its efforts to “license content from high-profile creators, including Ms. Rachel and Salish Matter.”
Those videos have generally appeared on both Netflix and YouTube, but Netflix has also pursued arrangements that give it greater control over creator content.
Netflix’s creator push puts pressure on YouTube
Bloomberg has reported on the growing competition between Netflix and YouTube for creators, with Netflix pursuing deals with some of YouTube’s biggest stars.
The streaming giant has also expanded into video podcasts, an area in which YouTube has long been a dominant platform.
Netflix has signed deals with shows including “The Bill Simmons Podcast” and “The Breakfast Club.”
In some of those agreements, Netflix required the video podcasts to be removed from YouTube.
Business Insider reported that Netflix’s expansion into creator content has coincided with YouTube introducing new features aimed at helping creators grow their audiences and make money from their content.
YouTube has historically relied heavily on its advertising revenue-sharing model rather than making direct additional payments to creators, although it has offered such payments at various points.
The reported exclusivity offers would therefore represent “a more direct financial effort by YouTube to retain top talent.”
YouTube links exclusivity to creator support
According to Business Insider, another person who had direct conversations with YouTube said the company also suggested that creators who declined exclusivity deals could miss out on benefits such as “marketing support and access to brand deals.”
The discussions are taking place as creators become increasingly important to the wider entertainment industry, with streaming platforms seeking to attract audiences built by personalities who first established their followings online.
Netflix has recognised the growing influence of creators on popular culture and YouTube’s increasing share of television viewing in the United States.
The competition also extends beyond conventional creator videos.
Netflix has made a major push into video podcasts, signing agreements with established shows and seeking content that can compete with YouTube’s dominance in the format.
The latest YouTube outreach raises the prospect of increased competition for the biggest creator names, as traditional streaming companies and digital platforms compete for exclusive access to audiences built outside conventional television and film.