Netflix is on track to surpass YouTube in total video revenue for the first time in 2025, according to new data from Omdia.
As of 2024, YouTube remains ahead, generating $42.5 billion, while Netflix recorded $39.2 billion. However, in 2025, Netflix is projected to overtake YouTube, reaching $46.2 billion, fuelled by $43.2 billion from subscriptions and $3.2 billion from advertising. YouTube, meanwhile, is expected to generate $45.6 billion, with $36 billion from advertising and $9.6 billion from YouTube Premium.
Netflix and Amazon have two very different business models. Netflix will have more than 340 million paying subscribers in 2025, with over 600 million users benefiting from its content. YouTube, however, reaches more than 2 billion users globally, using its massive scale to deliver both advertising and premium subscriptions.
“In markets like the US and the UK, there is significant overlap between audiences,” Maria Rua Aguete, Senior Research Director at Omdia told the Content London event. “In the US, 57% of YouTube users are also Netflix subscribers, while in the UK, that number rises to 67%. This dynamic presents opportunities for both platforms.”
While often positioned as rivals, YouTube and Netflix increasingly collaborate rather than compete. “I see more collaboration than competition between YouTube, Netflix, and other industry players,” Rua Aguete stated. “Streaming services, broadcasters, and platforms are working together through marketing partnerships, content distribution, and advertising deals.”
A key example is Netflix’s use of YouTubers to promote Squid Game, tapping into influencer-driven marketing to attract new subscribers. Meanwhile, YouTube is proving to be a powerful platform for premium content, outperforming FAST (Free Ad-Supported TV) services.
“At the end of 2024, YouTube generated seven times more revenue than FAST platforms—$42.5 billion versus $6 billion,” Rua Aguete explained. “Major studios are recognizing this potential. Warner Bros., for instance, recently released 37 full-length movies for free on YouTube, and we expect to see more partnerships of this nature.”
Looking ahead, YouTube is making a push for more TV-like content. “Large players can turn this situation to their advantage by entering favourable ad-share agreements or even selling some of the associated sponsorship and video directly,” Rua Aguete said.
Another key trend is the shift in YouTube consumption to Connected TV. “Viewers are watching YouTube on the big screen more than ever before,” Rua Aguete noted. “This changes the advertising game, making YouTube an even bigger player in premium video.”
