YouTube Offers Creators Millions of Dollars to Stay Off Netflix
Bloomberg reports that YouTube is offering major creators millions of dollars to keep some content exclusive to its platform as Netflix increasingly signs YouTube-native talent to non-exclusive deals. YouTube has also warned that creators who simultaneously publish on Netflix could lose marketing support, event opportunities, and access to revenue from certain brand campaigns. Quartz reports: Bloomberg described two categories of payment: funding directed at specific programs, and a portion of the revenue YouTube brings in through large advertiser partnerships. No agreements have been finalized, but YouTube is close to deals with several partners, citing people familiar with the negotiations who declined to be identified. Creators who sign with Netflix face consequences. YouTube has warned creators that those who simultaneously publish videos on Netflix risk being sidelined from the platform's marketing campaigns and events, and would lose access to a share of proceeds from certain major brand deals.
Netflix has been signing YouTube creators to non-exclusive deals that allow them to post the same content on both platforms simultaneously. Creators including Alan Chikin Chow and Nick DiGiovanni have already signed such agreements, and Netflix remains in active conversations with dozens of other channels and programs, including the celebrity talk show Hot Ones. Netflix's pitch is straightforward: creators receive a substantial additional payday for content they have already produced, and their work reaches an audience that numbers more than 325 million subscribers.
YouTube Chief Executive Officer Neal Mohan had previously held that creators who work with competitors tend to drive viewers back to YouTube. But Bloomberg reported that Mohan and his team decided in recent weeks that the growing number of creators posting simultaneously on both platforms had become a problem that needed to be addressed. The concern is that when a video runs on both platforms simultaneously, YouTube's ability to convince advertisers of that video's exclusive value is undermined.
Netflix has been signing YouTube creators to non-exclusive deals that allow them to post the same content on both platforms simultaneously. Creators including Alan Chikin Chow and Nick DiGiovanni have already signed such agreements, and Netflix remains in active conversations with dozens of other channels and programs, including the celebrity talk show Hot Ones. Netflix's pitch is straightforward: creators receive a substantial additional payday for content they have already produced, and their work reaches an audience that numbers more than 325 million subscribers.
YouTube Chief Executive Officer Neal Mohan had previously held that creators who work with competitors tend to drive viewers back to YouTube. But Bloomberg reported that Mohan and his team decided in recent weeks that the growing number of creators posting simultaneously on both platforms had become a problem that needed to be addressed. The concern is that when a video runs on both platforms simultaneously, YouTube's ability to convince advertisers of that video's exclusive value is undermined.
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