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BUSINESS & LONDON - Netflix Set to Surpass YouTube in Video Revenue in 2025

 

 

Finds Omdia - Netflix is projected to have over 340 million paying subscribers in 2025, with more than 600 million users benefiting from its content

 

LONDON, ENGLAND - (BUSINESS WIRE)

Wednesday March 5, 2025

For the first time, Netflix is set to overtake YouTube in total video revenue in 2025, according to exclusive Omdia research presented at MIP TV London 2025.

In 2024, YouTube led the market with $42.5 billion in revenue, while Netflix generated $39.2 billion. However, projections for 2025 show Netflix pulling ahead, reaching $46.2 billion, driven by $43.2 billion from subscriptions and $3.2 billion from advertising. Meanwhile, YouTube is expected to generate $45.6 billion, with $36 billion from advertising and $9.6 billion from YouTube Premium.

Netflix and YouTube take distinct approaches to revenue generation:

Netflix is projected to have over 340 million paying subscribers in 2025, with more than 600 million users benefiting from its content.

YouTube continues to dominate in scale, reaching over 2 billion users globally, leveraging its massive audience through advertising and premium subscriptions.

As the streaming landscape evolves, Netflix's growing ad-supported model and subscriber base could reshape the competitive dynamics of digital video revenue.

"In markets like the US and UK, there is significant overlap between audiences," said Maria Rua Aguete, Senior Research Director at Omdia. "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 are increasingly collaborating rather than competing. "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."

One key example is Netflix's use of YouTubers to promote the TV series Squid Game, leveraging influencer-driven marketing to attract new subscribers. Meanwhile, YouTube is solidifying its role as a premium content platform, outperforming Free Ad-Supported TV (FAST) 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 taking notice. Warner Bros., for example, recently released 37 full-length movies for free on YouTube, and we expect to see more partnerships like this in the future."

Looking ahead, YouTube is making a strong push toward TV-like content.

"Large players can turn this to their advantage by entering favorable ad-share agreements or even selling some sponsorship and video inventory directly," Rua Aguete noted.

She also highlighted the growing role of YouTubers in cinema recovery, with influencer-driven promotions becoming an integral part of movie marketing strategies.

Another major shift is YouTube's increasing consumption on Connected TVs. "Viewers are watching YouTube on the big screen more than ever before," Rua Aguete said. "This changes the advertising game, making YouTube an even bigger player in premium video."



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