It’s been almost 20 years since the founding of Alphabet’s YouTube, and Hollywood still doesn’t really know what to do with it.
YouTube, which effectively invented user-generated content, claims a daunting share of overall media consumption. And it’s no longer just dominating the internet, it’s dominating the living room, too.
YouTube made up 9.7% of all viewership on connected and traditional TVs in the U.S. in May — the largest share of TV for a streaming platform ever reported by Nielsen’s monthly “The Gauge” report. Netflix ranked second, claiming 7.6% of viewership. Among streamers only, YouTube’s total viewership was close to 25% market share.
“We’re not talking about your mobile phone, your laptop, that I’m sure you see your kids using all the time, but on the biggest screen in the house, the TV,” said LightShed media analyst Rich Greenfield. “Every [media] executive has to be paying attention.”
But media companies such as Netflix, Disney and Warner Bros. Discovery aren’t sure whether YouTube is friend or foe.
Some media executives see YouTube as a companion platform to subscription streaming services and cable TV — an unwieldy behemoth of non-narrative, creator-led content with a social media slant that doesn’t really fit the New York-Hollywood nexus of professional media. Others — even at times the same executives — view YouTube as an existential threat to the entertainment industry, stealing viewership from subscription streaming services and, with it, the cultural center of American youth.
Those competing truths have led media and entertainment companies to concoct a wide array of strategies to combat the growing threat.
Disney leaders discuss YouTube “every day” in strategic meetings and have considered adding user-generated content to Disney+, though it’s not on the immediate roadmap, according to people familiar with the matter, who asked not to be named because the discussions are private.
Netflix and Warner Bros. Discovery, on the other hand, have consciously chosen to focus on the other 90% of the TV viewing world that isn’t YouTube.
“I do think it snuck up on people that YouTube was as important a presence in people’s lives and people’s viewing experiences not just on the phone but in the living room,” said Tara Walpert Levy, YouTube’s vice president of Americas, in an interview.
“When Nielsen first noted that YouTube was winning the streaming wars in terms of viewing, full stop, not just for ad-supported platforms, I had a ton of my friends from advertising, from media, who were like, ‘Can you believe it?’ It exceeded even our expectations,” she said.
YouTube’s growing dominance
Earlier this year, YouTube Chief Executive Officer Neal Mohan announced that users watch more than 1 billion hours of YouTube content on TV screens each day. More than 150 million Americans watch YouTube on connected TVs each month, according to the company.
Ad dollars have followed. In 2023, YouTube took in $31.5 billion in advertising revenue, up 8% from 2022 and 271% from six years ago. In the first quarter of 2024, YouTube’s ad revenue climbed 21% from a year earlier to $8.1 billion.
YouTube, founded in 2005, sold to Google for $1.65 billion a year later. It’s since ballooned in size as advertisers flocked to the platform. MoffettNathanson media analyst Michael Nathanson estimated in March that YouTube would be worth a whopping $400 billion as a standalone company — more than Disney and Comcast combined.
“YouTube is still the 800-pound gorilla in this space, and I do believe they’re a pretty unstoppable juggernaut,” said Candle Media co-CEO Kevin Mayer, who previously ran Disney’s streaming business and was briefly CEO of TikTok.
Disney’s YouTube focus
Disney executives are particularly attuned to YouTube’s rising dominance, given its grip on younger people, according to people familiar with the company’s thinking.
Disney has a legion of super-fans who flock to YouTube and other social media sites to promote and critique its parks, rides and merchandise, movies and TV shows. Integrating some of that content as shoulder programming to Disney’s scripted series and movies could help keep users on Disney+.
A Disney spokesperson declined to comment on conversations about adding original content to the platform.
The company claims 11.4% of TV viewership, according to Nielsen’s “The Gauge” report, when adding up cable and streaming, including Hulu and ESPN.
You’re betraying your audience. You’re leaving YouTube to act, and then you’re not posting online anymore, and you’re asking them to wait on a project that’s in development for what? A year, two years? People are going to forget about you, girl. That’s how the internet works.”
Brittany Broski
YouTube creator
“I think what we’re seeing from all of these traditional media companies is they don’t have enough content, and it’s too expensive to produce the types of premium content at scale that they need. And so maybe the [user-generated content] economy is a place they look … not to create their competitor, but as a lower cost way to add content to their services,” said LightShed’s Greenfield.
Disney is also considering putting more full episodes of Disney+ and Hulu series geared to older kids and adults directly on YouTube to entice an audience that isn’t currently subscribing to its streaming platforms, said a person familiar with the matter.
This is a strategy Disney has done with kids content for years, helping amplify hit animated series such as “Bluey,” “Spidey and his Amazing Friends” and “Mickey Mouse Clubhouse.”
“At the end of the day, Disney is a storytelling machine,” said Mayer. “We used short-form video on YouTube as a promotional device for our content. But I don’t think that we at Disney, nor have any other traditional media companies, leaned into YouTube as an original storytelling device the way they probably should have.”
According to internal research, Disney executives concluded that younger Americans use YouTube as an online encyclopedia, said one of the people familiar with the company’s discussions. That’s led the company to focus on the benefits of the platform’s discovery functionality while also programming against it, the person said.
Disney has made bespoke YouTube content for its new preschool series “Disney Junior’s Ariel,” which debuts June 27, to introduce the mermaid character to kids. It has also developed a series of “Winnie the Pooh” shorts so that it can research how the animated bear and his friends resonate with today’s youth.
The company is now considering making a full-length animated series on “Winnie the Pooh” based on the short-form video data, the person said.
Netflix’s muted response
Netflix is taking on YouTube from a different angle.
It doesn’t view the platform as the same singular threat to viewership that some of its peers do. Netflix famously considers everything that could occupy a user’s time, even sleep, as a long-term competitor.
For the time being, Netflix executives consider YouTube as catering to a different consumer need.
“We have built a hard-to-replicate combination of a strong slate, superior recommendations, broad reach and intense fandom, which drives healthy engagement on Netflix. Improvement in these key areas is the best way to delight our members and continue to grow our business,” Netflix said in its most recent quarterly shareholder letter.
Netflix has even found some success duplicating content on YouTube in specific instances.
“Cocomelon,” the animated toddler-geared short-form video series owned by Candle Media’s Moonbug Entertainment, has become massively popular on both YouTube and Netflix. “Cocomelon” has 175 million subscribers to its English language YouTube channel, and “many more if you add in all languages,” Mayer said.
At the same time, “Cocomelon” frequently tops Netflix’s most-watched list among kids shows.
The more immediate YouTube threat for Netflix comes from an advertising perspective. Netflix is now going head-to-head with YouTube for marketing dollars after introducing its ad-supported tier in November 2022.
Netflix said in May that it has 40 million global monthly active users for its advertising tier. That’s a far cry from YouTube’s more than 2 billion monthly active users.
Netflix is even contemplating launching free versions of its service in certain international markets to court advertisers, though there’s nothing concrete planned, Bloomberg reported earlier this week.
Netflix declined to comment for this story.
Other strategies
Comcast-owned NBCUniversal has experimented with new ways to copy the rabbit-hole effect of YouTube Shorts, which force-feed users content based on interest, by offering curated clips of “Saturday Night Live” sketches, scenes from “The Office” or favorite Bravo show moments.
If younger users are being conditioned to watch in a certain way, NBCUniversal’s Peacock streaming service wants to give consumers that choice in addition to its long-form movies and TV shows.
But simply curating feeds within a content vertical now feels like a “YouTube 1.0 strategy” given how TikTok, YouTube Shorts and Instagram Reels have redefined short-form viewing, according to Nathanson.
“I don’t think, at this point, there’s a strategy in place among any of the traditional media players to create content for the YouTube generation that’s more than just their branded strategy they’re doing now,” said Nathanson. “The future strategy is to use AI to deliver personalization for each of us. Today, none of the traditional media players has that. That’s YouTube 2.0.”
Amazon is trying a more direct plan of attack — pay YouTube’s biggest star to make a show for their own service.
The company announced a deal earlier this year with MrBeast, whose real name is Jimmy Donaldson, to make a reality TV show, “Beast Games,” that will pay the winner $5 million in cash. The format will largely borrow from previous MrBeast giveaway videos that pit many contestants against each other for cash, using a “fast-paced and high-production format,” as Amazon has promised.
MrBeast accepts the Favorite Male Creator award onstage during the 2023 Nickelodeon Kids’ Choice Awards in Los Angeles, March 4, 2023.
Monica Schipper | Getty Images
MrBeast’s YouTube channel has the most subscribers worldwide at 289 million and expects to take in a whopping $700 million in revenue in 2024, primarily through advertising and brand deals.
But while MrBeast may have crossover appeal, there’s skepticism among creators that YouTube celebrities will have success making shows for subscription streaming services. Moreover, the entire Hollywood system may operate too slowly for a younger generation that demands immediate content.
YouTube’s community
The popularity of YouTube stems from the authentic relationship creators have with their fans, according to Brittany Broski, 27, whose YouTube channel has more than 2 million subscribers.
“I still watch Netflix and HBO, where if I want a good fantasy series or whatever, I know where to go for that. But what YouTube is more concerned with is in this digital age, we’ve lost a sense of community and a sense of third spaces where we can go to hang out and meet new friends,” Broski said.
Broski’s audience, which she described as Generation Z and young millennial women and members of the LGBTQ+ community, ballooned during the pandemic. Stuck at home with limited social options, hundreds of thousands of people found Broski as they searched for fresh, real-time content.
That personal relationship is YouTube’s secret sauce, and it doesn’t translate when creators port to other services, Broski said.
“You’re betraying your audience,” said Broski. “You’re leaving YouTube to act, and then you’re not posting online anymore, and you’re asking them to wait on a project that’s in development for what? A year, two years? People are going to forget about you, girl. That’s how the internet works.”
Brittany Broski at VidCon 2022 in Anaheim, California, June 23, 2022.
David Livingston | Getty Images Entertainment | Getty Images
The business model of YouTube for successful creators incentivizes staying on the platform. YouTube has shared more than $70 billion with its creators over the last three years through its Partner Program, which shares advertising revenue with more than 3 million channels on the platform.
“Why would I create a show and sell it to a network when I could just put it on YouTube?” Broski said. “You’re self-funding, but if the money you’re making from AdSense is going right back into your content to make more money, why do you even have to contact that third party?”
YouTube also benefits from a low barrier to entry to create content and from instant feedback through comments from fans that often help shape future content immediately. That model can’t be replicated in a scripted form, where full seasons of TV shows are premade and rolled out on specific schedules.
“In the traditional industry, it’s about proving to other people that the content deserves to be made, deserves to be seen, deserves a marketing campaign, deserves dollars behind it,” said YouTube star and former professional cyclist Michelle Khare, 31, whose channel has more than 4.5 million subscribers. “With YouTube, if you have the drive, the ability, and in many cases, your phone, you can skip those steps and put it out into a democratic platform where the audience ultimately decides what rises to the top.”
Michelle Khare at The 2023 Streamy Awards in Los Angeles, Aug. 27, 2023.
Gilbert Flores | Penske Media | Getty Images
Aging out
Warner Bros. Discovery executives are perhaps the least concerned of all legacy media companies about YouTube’s rising dominance, which skews younger. Ninety-three percent of teenagers say they’ve used YouTube, far outpacing TikTok (63%), Snapchat (60%) and Instagram (59%), according to a 2023 Pew Research study. A 2023 survey from marketing firm InMobi found 61% of Gen Z respondents, or those ages 18-24 at the time of the survey, named user-generated content as their favorite form of media.
Warner Bros. Discovery’s Max streaming service has moved away from programming geared toward kids and teenagers — barring the occasional accidental hit such as “Euphoria.” The company’s focus on prestige dramas and adult movies is about as far away from YouTube’s typical fare as an entertainment company can offer.
Baked into the question of whether YouTube is friend or foe to the media industry is a second query: Will younger consumers simply grow out of YouTube’s bread and butter — the creator-led, non-narrative style of storytelling?
“My suspicion is that there will be a bit of an aging out,” said Mayer. “I think longer form storytelling is hard to replace with super short form storytelling.”
There may be room for both subscription streamers and YouTube to survive and flourish, with each operating in a lane that doesn’t impede the other’s too much. Still, YouTube is experimenting with episodic and scripted series to appeal to all audiences — a direct threat to traditional Hollywood. “Cobra Kai,” a spinoff of “The Karate Kid,” began on YouTube’s ad-free subscription service YouTube Premium, picked up a fan base and then moved to Netflix.
“There is some amount of conditioning that happens when you become familiar with a certain format that resonates with you, but what we are seeing is it’s not so black-and-white between a certain type of audience wanting a certain type of content,” said Nicky Rettke, YouTube’s vice president of product management.
There’s also the future threat of artificial intelligence on YouTube. While Hollywood’s use of AI is contractually restricted, and was a sticking point of recent strike negotiations, there are no current rules for user-generated content. Theoretically, this gives YouTube creators a huge leg up in experimenting with technology that could rival the production values of professional studios, putting even more pressure on traditional media.
Disclosure: Comcast’s NBCUniversal is the parent company of CNBC.
Hallmark launching a streaming service with two new original series, and Bill Skarsgård out for revenge in “Boy Kills World” are some of the new television, films, music and games headed to a device near you.
Also among the streaming offerings worth your time as selected by The Associated Press’ entertainment journalists: Alex Garland’s “Civil War” starring Kirsten Dunst, Natasha Rothwell’s heartfelt comedy for Hulu called “How to Die Alone” and Sylvester Stallone’s second season of “Tulsa King” debuts.
NEW MOVIES TO STREAM SEPT. 9-15
— Alex Garland’s “Civil War” is finally making its debut on MAX on Friday. The film stars Kirsten Dunst as a veteran photojournalist covering a violent war that’s divided America; She reluctantly allows an aspiring photographer, played by Cailee Spaeny, to tag along as she, an editor (Stephen McKinley Henderson) and a reporter (Wagner Moura) make the dangerous journey to Washington, D.C., to interview the president (Nick Offerman), a blustery, rising despot who has given himself a third term, taken to attacking his citizens and shut himself off from the press. In my review, I called it a bellowing and haunting experience; Smart and thought-provoking with great performances. It’s well worth a watch.
— Joey King stars in Netflix’s adaptation of Scott Westerfeld’s “Uglies,” about a future society in which everyone is required to have beautifying cosmetic surgery at age 16. Streaming on Friday, McG directed the film, in which King’s character inadvertently finds herself in the midst of an uprising against the status quo. “Outer Banks” star Chase Stokes plays King’s best friend.
— Bill Skarsgård is out for revenge against the woman (Famke Janssen) who killed his family in “Boy Kills World,” coming to Hulu on Friday. Moritz Mohr directed the ultra-violent film, of which Variety critic Owen Gleiberman wrote: “It’s a depraved vision, yet I got caught up in its kick-ass revenge-horror pizzazz, its disreputable commitment to what it was doing.”
— The year was 2006. Snow Patrol, the Northern Irish-Scottish alternative rock band, released an album, “Eyes Open,” producing the biggest hit of their career: “Chasing Cars.” A lot has happened in the time since — three, soon to be four quality full-length albums, to be exact. On Friday, the band will release “The Forest Is the Path,” their first new album in seven years. Anthemic pop-rock is the name of the game across songs of love and loss, like “All,”“The Beginning” and “This Is the Sound Of Your Voice.”
— For fans of raucous guitar music, Jordan Peele’s 2022 sci-fi thriller, “NOPE,” provided a surprising, if tiny, thrill. One of the leads, Emerald “Em” Haywood portrayed by Keke Palmer, rocks a Jesus Lizard shirt. (Also featured through the film: Rage Against the Machine, Wipers, Mr Bungle, Butthole Surfers and Earth band shirts.) The Austin noise rock band are a less than obvious pick, having been signed to the legendary Touch and Go Records and having stopped releasing new albums in 1998. That changes on Friday the 13th, when “Rack” arrives. And for those curious: The Jesus Lizard’s intensity never went away.
— Hallmark launched a streaming service called Hallmark+ on Tuesday with two new original series, the scripted drama “The Chicken Sisters” and unscripted series “Celebrations with Lacey Chabert.” If you’re a Hallmark holiday movies fan, you know Chabert. She’s starred in more than 30 of their films and many are holiday themed. Off camera, Chabert has a passion for throwing parties and entertaining. In “Celebrations,” deserving people are surprised with a bash in their honor — planned with Chabert’s help. “The Chicken Sisters” stars Schuyler Fisk, Wendie Malick and Lea Thompson in a show about employees at rival chicken restaurants in a small town. The eight-episode series is based on a novel of the same name.
— Natasha Rothwell of “Insecure” and “The White Lotus” fame created and stars in a new heartfelt comedy for Hulu called “How to Die Alone.” She plays Mel, a broke, go-along-to-get-along, single, airport employee who, after a near-death experience, makes the conscious decision to take risks and pursue her dreams. Rothwell has been working on the series for the past eight years and described it to The AP as “the most vulnerable piece of art I’ve ever put into the world.” Like Mel, Rothwell had to learn to bet on herself to make the show she wanted to make. “In the Venn diagram of me and Mel, there’s significant overlap,” said Rothwell. It premieres Friday on Hulu.
— Shailene Woodley, DeWanda Wise and Betty Gilpin star in a new drama for Starz called “Three Women,” about entrepreneur Sloane, homemaker Lina and student Maggie who are each stepping into their power and making life-changing decisions. They’re interviewed by a writer named Gia (Woodley.) The series is based on a 2019 best-selling book of the same name by Lisa Taddeo. “Three Women” premieres Friday on Starz.
— Sylvester Stallone’s second season of “Tulsa King” debuts Sunday on Paramount+. Stallone plays Dwight Manfredi, a mafia boss who was recently released from prison after serving 25 years. He’s sent to Tulsa to set up a new crime syndicate. The series is created by Taylor Sheridan of “Yellowstone” fame.
— One thing about the title of Focus Entertainment’s Warhammer 40,000: Space Marine 2 — you know exactly what you’re in for. You are Demetrian Titus, a genetically enhanced brute sent into battle against the Tyranids, an insectoid species with an insatiable craving for human flesh. You have a rocket-powered suit of armor and an arsenal of ridiculous weapons like the “Chainsword,” the “Thunderhammer” and the “Melta Rifle,” so what could go wrong? Besides the squishy single-player mode, there are cooperative missions and six-vs.-six free-for-alls. You can suit up now on PlayStation 5, Xbox X/S or PC.
— Likewise, Wild Bastards isn’t exactly the kind of title that’s going to attract fans of, say, Animal Crossing. It’s another sci-fi shooter, but the protagonists are a gang of 13 varmints — aliens and androids included — who are on the run from the law. Each outlaw has a distinctive set of weapons and special powers: Sarge, for example, is a robot with horse genes, while Billy the Squid is … well, you get the idea. Australian studio Blue Manchu developed the 2019 cult hit Void Bastards, and this Wild-West-in-space spinoff has the same snarky humor and vibrant, neon-drenched cartoon look. Saddle up on PlayStation 5, Xbox X/S, Nintendo Switch or PC.
Former President Donald Trump is on the brink of a significant financial decision that could have far-reaching implications for both his personal wealth and the future of his fledgling social media company, Trump Media & Technology Group (TMTG). As the lockup period on his shares in TMTG, which owns Truth Social, nears its end, Trump could soon be free to sell his substantial stake in the company. However, the potential payday, which makes up a large portion of his net worth, comes with considerable risks for Trump and his supporters.
Trump’s stake in TMTG comprises nearly 59% of the company, amounting to 114,750,000 shares. As of now, this holding is valued at approximately $2.6 billion. These shares are currently under a lockup agreement, a common feature of initial public offerings (IPOs), designed to prevent company insiders from immediately selling their shares and potentially destabilizing the stock. The lockup, which began after TMTG’s merger with a special purpose acquisition company (SPAC), is set to expire on September 25, though it could end earlier if certain conditions are met.
Should Trump decide to sell his shares after the lockup expires, the market could respond in unpredictable ways. The sale of a substantial number of shares by a major stakeholder like Trump could flood the market, potentially driving down the stock price. Daniel Bradley, a finance professor at the University of South Florida, suggests that the market might react negatively to such a large sale, particularly if there aren’t enough buyers to absorb the supply. This could lead to a sharp decline in the stock’s value, impacting both Trump’s personal wealth and the company’s market standing.
Moreover, Trump’s involvement in Truth Social has been a key driver of investor interest. The platform, marketed as a free speech alternative to mainstream social media, has attracted a loyal user base largely due to Trump’s presence. If Trump were to sell his stake, it might signal a lack of confidence in the company, potentially shaking investor confidence and further depressing the stock price.
Trump’s decision is also influenced by his ongoing legal battles, which have already cost him over $100 million in legal fees. Selling his shares could provide a significant financial boost, helping him cover these mounting expenses. However, this move could also have political ramifications, especially as he continues his bid for the Republican nomination in the 2024 presidential race.
Trump Media’s success is closely tied to Trump’s political fortunes. The company’s stock has shown volatility in response to developments in the presidential race, with Trump’s chances of winning having a direct impact on the stock’s value. If Trump sells his stake, it could be interpreted as a lack of confidence in his own political future, potentially undermining both his campaign and the company’s prospects.
Truth Social, the flagship product of TMTG, has faced challenges in generating traffic and advertising revenue, especially compared to established social media giants like X (formerly Twitter) and Facebook. Despite this, the company’s valuation has remained high, fueled by investor speculation on Trump’s political future. If Trump remains in the race and manages to secure the presidency, the value of his shares could increase. Conversely, any missteps on the campaign trail could have the opposite effect, further destabilizing the stock.
As the lockup period comes to an end, Trump faces a critical decision that could shape the future of both his personal finances and Truth Social. Whether he chooses to hold onto his shares or cash out, the outcome will likely have significant consequences for the company, its investors, and Trump’s political aspirations.
Cochise County, AZ — Law enforcement officials in Arizona have apprehended Ronald Lee Syvrud, a 66-year-old resident of Cochise County, after a manhunt was launched following alleged death threats he made against former President Donald Trump. The threats reportedly surfaced in social media posts over the past two weeks, as Trump visited the US-Mexico border in Cochise County on Thursday.
Syvrud, who hails from Benson, Arizona, located about 50 miles southeast of Tucson, was captured by the Cochise County Sheriff’s Office on Thursday afternoon. The Sheriff’s Office confirmed his arrest, stating, “This subject has been taken into custody without incident.”
In addition to the alleged threats against Trump, Syvrud is wanted for multiple offences, including failure to register as a sex offender. He also faces several warrants in both Wisconsin and Arizona, including charges for driving under the influence and a felony hit-and-run.
The timing of the arrest coincided with Trump’s visit to Cochise County, where he toured the US-Mexico border. During his visit, Trump addressed the ongoing border issues and criticized his political rival, Democratic presidential nominee Kamala Harris, for what he described as lax immigration policies. When asked by reporters about the ongoing manhunt for Syvrud, Trump responded, “No, I have not heard that, but I am not that surprised and the reason is because I want to do things that are very bad for the bad guys.”
This incident marks the latest in a series of threats against political figures during the current election cycle. Just earlier this month, a 66-year-old Virginia man was arrested on suspicion of making death threats against Vice President Kamala Harris and other public officials.
