YouTube punches back at Netflix by offering top creators millions for exclusive deals
YouTube is in talks to offer select creators millions in payments if they keep their videos exclusively on its platform for a set period, two people familiar with its efforts told Business Insider.
The move is a direct shot at Netflix, which has been ramping up its licensing of creator videos for its platform.
Bloomberg’s Lucas Shaw broke the news on YouTube’s outreach.
One person familiar with YouTube’s efforts told Business Insider that talks were underway with a handful of creators. They added that the deal specifics varied by creator and that YouTube hadn’t set a deadline to complete them.
A second person, who’s had direct conversations with YouTube, said the talks had gotten underway in the past few weeks. This person said that in one case, YouTube approached a creator with an offer “in the millions” in exchange for posting exclusively on YouTube for a certain period. The offer was verbal, and talks hadn’t gotten into the details yet, this person added.
This person said that, along with YouTube’s offer, the company suggested creators who didn’t take an exclusivity deal could lose out on perks like marketing support and access to brand deals.
These talks are the most tangible sign yet that YouTube is reacting to defend its turf as the place where top creators build their careers.
YouTube has been rolling out new features to help creators make money and grow their audiences. However, it has historically been reluctant to directly pay creators outside its usual ad-revenue-split model — though it has done so in particular moments in the past.
The dangling of direct additional payments suggests YouTube is feeling the heat from Netflix and other streamers. Netflix has looked to beef up its catalog with videos from creators like Ms. Rachel and Salish Matter. The industry’s leading paid streaming service has recognized creators’ growing impact on popular culture and YouTube’s increasing share of TV watch time in the US.
As part of that, Netflix embarked this year on a major video podcast push, another area where YouTube has dominated. The streamer signed deals with shows like “The Bill Simmons Podcast” and “The Breakfast Club.”
Now the big question is how hot the market will get. Will we see a bidding war for top creator talent?