Netflix could beat YouTube in revenue this year with a boost from ads business
Illustration by Reagan Hicks / Shutterstock / The Current
Netflix reached new heights last year, and its momentum isn’t likely to slow down in 2025.
The streaming giant could surpass YouTube in total revenue for the first time this year, according to new data from Omdia, making it the top connected TV (CTV) video platform by revenue. Omdia projects Netflix to reach $46.2 billion in 2025, including $3.2 billion from advertising — topping YouTube’s projected $45.6 billion total.
That projection follows a triumphant 2024 for the streamer, in which Netflix boasted over 300 million subscribers and saw its best quarter of additions yet in Q4. This year, though, could be a breakthrough for its nascent advertising business.
While Netflix’s subscriber revenue greatly outpaces that of advertising — which it introduced in 2022 — topping YouTube in total revenue would send a strong signal to marketers that its ad-supported model is gaining momentum.
“Advertising is how Netflix overtakes YouTube [in revenue],” Maria Rua Aguete, head of media and entertainment at Omdia, tells The Current.
From crawling to walking
Netflix said in its Q4 2024 earnings letter that its advertising plan accounted for 55% of new sign-ups in available regions during the quarter. The company plans to capitalize on the momentum in 2025, including an ad-supported plan for Extra Member accounts.
“A top priority in 2025 is to improve our offering for advertisers so that we can substantially grow our advertising revenue,” the company said in the letter.
Co-CEO Greg Peters put it another way during the earnings call: “2025 is the year we transition from crawl to walk [for advertising].”
Going deeper
Netflix has said that it competes with YouTube “for people’s time and attention.” Both platforms regularly top Nielsen’s monthly Gauge report, which tracks the share of streaming viewing in the U.S.
Netflix believes it’s far from reaching its ceiling.
“We believe we account for less than 10% of TV viewing in every country in which we operate, all of which suggests a long runway for growth as streaming continues to expand around the world,” the company said in its Q4 earnings letter.
The road to maximizing its viewership may run partly through YouTube. Fifty-seven percent of YouTube viewers in the U.S. and 67% in the U.K. also watch Netflix, according to Omdia. There is an opportunity to capture the remaining 43% and 33%, respectively, Rua Aguete says.
While the two are competing for consumers’ attention and advertisers’ dollars, Netflix can — and does — leverage YouTube to help it grow: “Our movies and TV shows drive excitement and fan engagement on YouTube,” the company said in its Q2 2024 earnings letter.
It’s also acquired series that originated on YouTube, such as Cobra Kai and kids’ programming like Cocomelon, substantially growing their audiences.
But that just reflects how successful Netflix is at fostering professionally made, premium content in a way that YouTube has not been able to, particularly since the latter abandoned original scripted content in 2019. Still, Rua Aguete sees more opportunities for collaboration.
“Streaming services, broadcasters and platforms are working together through marketing partnerships, content distribution and advertising deals,” she said recently at the MIP London conference.