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, 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 .
YouTube’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 .
However, the platform is also warning creators who sign deals with Netflix could face consequences . According to Bloomberg, YouTube has told creators that cross-posting videos on YouTube and Netflix hurts viewership on YouTube and suggests their channels are no longer treating the platform as their primary distribution outlet .
Sources familiar with the matter said YouTube’s solution here isn’t all carrot. It’s also retaliating against creators who have signed deals with Netflix by excluding them from marketing campaigns and events, and denying them a share of proceeds from platform brand deals .
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” .
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 .
