Are streaming platforms trying to be more like YouTube? Not exactly.

One of Netflix’s biggest hits of the year is a preview of a video game.

The 27-minute Grand Theft Auto 6 extended look was the streamer’s most-watched title the week it was released, drawing over 31 million views from Aug. 27 through Aug. 30.

If you’re thinking that this seems like the kind of thing one might typically find on YouTube, well, it dropped on YouTube hours after it debuted on Netflix.

The preview’s success proves Netflix’s efforts to branch out into non-traditional content — games, video podcasts, vertical video — might have staying power, positioning the streamer well for owning a larger share of the engagement pie.

Netflix’s recent strategy shifts echo that of other streamers like Disney, which have seemingly been adopting YouTube’s playbook where creator content deals, potential free tiers and user-generated content thrive.
 
Looking at the stats, it’s understandable to see why. Month after month, YouTube tops Nielsen’s Gauge reports, which measure the share of U.S TV usage on streaming platforms. For the most recent report covering June, YouTube led with 13.8% of time spent watching TV, ahead of Netflix’s 7.9% and Disney’s 4.6%.

“There's been a marked increase in the major streaming platforms looking to access audiences as pressure on subscriber growth and revenue increases,” said Mike Murphy O’Reilly, chief revenue officer at Dexerto.

But Brandon Katz, director of insights and content strategy at Greenlight Analytics, suggested that it’s not exactly a them vs. YouTube scenario. After all, he noted, free ad-supported streaming TV (FAST) services have also ballooned in usage in recent years.

“This is about everyone clamoring for the finite resource that is daily attention,” Katz said.

Free is back in fashion

“Free” is typically a good way to gain attention.

 In May, both The Roku Channel and Tubi were ahead of the likes of Peacock, Paramount+ and HBO Max in TV viewing in the U.S., according to Nielsen’s Gauge. In June, Roku continued to lead the charge. Katz said FAST services are the fastest-growing streaming options in the U.S.

“Free tiers can help companies squeeze more value out of content, especially older titles, and especially as costs amortize over time; they also create additional advertising inventory,” Katz said.

So perhaps it’s not a shock that some subscription streamers are potentially launching ad tiers. Business Insider reported in July that Disney+ was considering adding a free plan. Netflix co-CEO Greg Peters recently said that a “free offering could make sense in some markets” but they would need “an effective scaled ads business.” Paramount+ is also testing a free tier, according to TheWrap.

Peacock offered a free tier at launch, but abandoned it. According to Greenlight Analytics data, Peacock’s audience has the lowest overlap with TikTok and other social platforms of any streamer, and skews older than rivals.

“Younger, cost-sensitive YouTube native audiences weren't really a major component of Peacock's subscriber base,” Katz said.

You might be asking: Wait, hasn’t free TV been around for decades? And you’d be right. But broadcast doesn’t command the kind of attention (there’s that word again) that streaming does anymore, except for during a Super Bowl of course (streaming accounted for 48.5% of TV viewing in June, almost 30 percentage points more than broadcast). And media companies are looking to capture TV ad revenue wherever attention is greatest.  

So maybe they’re not trying to be YouTube but just…TV?

"Free tiers aren't really an attempt to compete with platforms like YouTube,” argued Jake Nishimura, vice president of marketing at Kiswe. “Providing free content on a premium streaming platform is more about providing a low friction for fans to try out your service, capture fan data, and then converting them into paying subscribers once they're hooked on the content."

Those are salient points, too: Streaming provides more robust data than any other TV distribution method, important for advertising. But these platforms also do something that YouTube doesn’t: make content that people are willing to pay for.

Courting creators and attention

At any rate, streamers’ evolving strategies might have  caught the attention of YouTube.

Notably, it’s offering creators exclusivity deals to not work with Netflix, according to Bloomberg, and creators could face consequences if their videos drop on both platforms at the same time.

It’s not just Netflix that has been making a play for creators or shorter content, though. Disney, for instance, recently struck a deal with TikTok where curated, Disney-inspired TikTok content will be available on Disney+. This followed a similar deal with OpenAI’s Sora before that app shut down. It’s part of a growing trend of streamers adopting vertical video mobile feeds.

This likely seems a bit confusing after what we just covered. Are streamers trying to be YouTube, TV or, even social media apps? 

 It might be easier to think of it as streamers just “trying to dominate all video views, whether big budget blockbusters, original series, creators, trailers,” Dexerto’s O’Reilly said. Again, attention.  

That brings us back to the Grand Theft Auto 6 Netflix special. That factors into Netflix’s larger strategy of capitalizing on key cultural moments. That has manifested itself mainly in sports, such as boxing matches and Christmas NFL games. But GTA6 will be one of the biggest cultural moments of the year — of course Netflix wanted in.  

“I wouldn't be surprised if Netflix did more of these special programming moments in the future with big tentpole moments across gaming, film and music” O’Reilly added.  

At the end of the day, YouTube and subscription streamers actually have quite a lot of overlap in users. According to Greenlight data, those that pay for multiple streaming platforms also watch YouTube at a higher rate than the general population, and are more likely to follow influencers.  

“This ‘battle’ is not a zero-sum game,” Katz said. Subscription streamers are just “trying to meet their subscribers where they already are.”