Arriving in Brussels ahead of a review of Europe’s streaming regulations, Netflix co-CEO Ted Sarandos delivered a pointed message to EU policymakers, warning them in that they are overlooking one of the biggest threats to both streamers and broadcasters: YouTube.
In an interview with Politico, Sarandos argued that YouTube is no longer simply a social media platform but a direct competitor for television viewing.
As regulators weigh updates to the EU’s audiovisual rules amid concerns that existing regulations have failed to create a level playing field between broadcasters, streaming services and video-sharing platforms, Sarandos said policymakers are totally misreading the landscape’s shifting dynamics.
“One of the things that we saw in recent months with the Warner Brothers transaction is a real deep misunderstanding about what YouTube is and isn’t,” Sarandos said.
“YouTube is a straightforward direct competitor for television, either a local broadcaster or a streamer like Netflix. The connected television market is a zero-sum screen. So whichever one you choose, that’s what you’re watching tonight.”
Sarandos said regulators have yet to fully grasp the migration of YouTube consumption from mobile devices to television sets.
“You know, about 55 percent of all YouTube engagement now is on the television through their app. So to me, that’s the thing to keep an eye on,” he said, before adding that “it’s a pretty straightforward, competitive model and we think probably should have a level playing field relative to everybody else.”
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People have an outdated perception of YouTube, Sarandos said, as a “bunch of cat videos” when it’s in fact “in the same exact game that we are.”
Sarandos also took the opportunity to highlight Netflix’s footprint in Europe, which has become the company’s largest market. The L.A.-based noted that Netflix generated roughly $3.5 billion to $3.8 billion in revenue in the region in the fourth quarter alone, underscoring its growing reliance and investment in the territory.
Over the past decade, Netflix has invested more than $13 billion in European content, working with over 600 independent producers and supporting more than 100,000 cast and crew jobs across the region, according to the streamer.
Sarandos also pointed to an unexpected upside from Netflix’s recent merger negotiations with Warner Bros. Discovery, saying the process opened the door to new conversations with theatrical players worldwide.
“We’ve had really healthy conversations with folks who we hardly ever talked to, theater operators, as a good example. (…) I think we’ll come out of this with a much more creative relationship with exhibitions around the world.”
“And by way of example, doing things that we haven’t done before. I don’t recommend testifying before the Senate again, but it was an interesting experience for sure,” quipped Sarandos.
From Variety US