Netflix is expected to make more money than YouTube in 2025. While many might assume that Netflix already generates more revenue from its rising monthly fees from an ever-increasing number of subscribers, research from Omdia presented at MIP TV London suggests that Netflix will overtake YouTube in total video revenue for the first time. That shows how significant YouTube is.
In 2024, YouTube led the market with $42.5 billion in revenue, which is seven times more than all other free advertising supported online video services, while Netflix generated $39.2 billion. Both are a long way behind the estimated advertising revenue of TikTok.
YouTube makes the majority of its money from advertising, but a significant portion comes from subscriptions to its multichannel television service in the United States.
Netflix makes the vast majority of its money from subscriptions, although it is growing revenues from advertising.
However, projections for 2025 show Netflix pulling ahead, reaching $46.2 billion in revenue, 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.
YouTube has over 2 billion users worldwide. In the United States, around 57% of them are Netflix members. In the United Kingdom it is 67%.
Netflix, which ended 2023 with 260 million paying subscribers and ended 2024 with just over 300 million, is projected to have over 340 million in 2025, although it will no longer provide quarterly figures.
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”, said Maria Rua Aguete, the senior research director at Omdia.
“Streaming services, broadcasters, and platforms are working together through marketing partnerships, content distribution, and advertising deals,” she said. An example of this is the use of YouTubers to promote the Netflix series Squid Game.