People
In 2026, we predict YouTube and Netflix will converge more than ever before as each vies to be the platform (and advertising partner) of choice for short-form creator content, serialized and episodic content, premium long-form entertainment, and live content. We predict that YouTube, the ad-revenue giant, will offer more Netflix-style content experiences to boost its subscriber base, while Netflix will increase its share of short-form, mobile-based content to rely less on subscription revenue and more on advertising.
In 1998, Netflix launched its online DVD service with 925 titles available for rental via mail. In 2005, YouTube—originally planned as an online dating service—launched as a video uploading and viewing platform with a clip of co-founder Jawed Karim at the zoo.
Fast-forward to 2025, and the two video behemoths have separated from the rest of the streaming field. Netflix is the world’s largest subscription streaming service with more than 300 million subscribers, although in the U.S., YouTube’s share of monthly television viewing now dwarfs Netflix’s. They’ll continue to battle for the top spot in global viewership and revenue for the foreseeable future.
As industry dynamics have evolved through the years, these two platforms with very different beginnings have grown in similar directions as market forces brought them closer together.
Key themes
The path to parallel offerings
YouTube and Netflix are converging across content, audience, platform, and advertising to capture broader viewership. YouTube, historically mobile-first, now sees televisions as the dominant device in the U.S. and is expanding original scripted series, episodic creator content, and pay-per-view movies, positioning itself more like traditional TV streamers. Meanwhile, Netflix is targeting YouTube’s short-form dominance by moving into creator-driven content and video podcasts, exemplified by its partnership with Spotify for The Ringer’s shows.
Both platforms are also adapting advertising strategies: Netflix’s ad-supported growth pushes YouTube to refine episodic and shoppable ad offerings, while YouTube remains a major channel for public broadcasters and IP owners to extend reach. Strategic partnerships help Netflix reduce customer acquisition costs, while YouTube continues to monetize at scale.
YouTube & Netflix: Different starting points to converging strategies
YouTube and Netflix will reshape audience engagement
As the two platforms compete for top viewership and revenue, their strategies—cross-format content, creator-driven programming, and multi-platform distribution—are shaping industry benchmarks.
From 2026 onwards, YouTube and Netflix will appear increasingly similar in approach, dominating streaming for the foreseeable future and setting the blueprint for how others attempt to compete.
2026 Media & Entertainment Industry Predictions Report
The media and entertainment world is shifting faster than ever—from streaming platforms merging short-form, long-form, and live content, to AI upending search and gaming, and M&A activity reshaping the landscape. Our annual Predictions Report dives into these trends, exploring who’s leading the charge, what’s next, and how businesses can stay ahead in a market defined by change. Click through to see where the industry is headed—and where opportunity lies.
Learn more about AlixPartners' Media & Entertainment Report in our other chapters:
