Why YouTube Beating Netflix at the TV Game Matters to Alphabet

YouTube's share of the US TV market is at 10. 6%. Now, how does that give Alphabet a competitive advantage against other companies that are, you know, producing their own shows? — So, when you really sit back and think about what YouTube is, it's not a traditional content provider, it is the largest content marketplace on the planet. So, if you look at a competitor like Netflix, they control the entire creative output. They decide which shows that they're going to make, how they're going to air, when they're going to air. They cover all of the budget associated with it. And with that comes significant upside potential, but also it comes with execution risk, downside, all of that. YouTube doesn't have that because largely they are operating a variable creator driven content model. So, you know, they don't have to deal with the production costs. It's the individual YouTubers who have to deal with the production cost. They're the ones risk. All that YouTube has to do at the end of the day is essentially optimize the ad and subscription experience and then reward those contributors accordingly. So this ultimately reduces risk for the company and by extension its shareholders and it improves the scalability of the platform.