YouTube, Instagram now key rivals for Netflix: Ted Sarandos

Ted Sarandos, the co-CEO of Netflix, has cited the growing competition from platforms such as YouTube and Instagram as the company continues to move forward with its acquisition bid for Warner Bros Discovery. Sarandos made the comments during a recent earnings call and investor discussion about Netflix’s new acquisition offer.

Sarandos pointed out that the likes of YouTube have moved from being hosting sites for user-generated content to hosting feature-length content, live sports, and other major events, and that this has changed the way audiences consume television. “YouTube is not just user-generated content and cat videos anymore,” he said, pointing out that major award shows and sports programming are now available on multiple digital platforms. He also pointed out the growing role of Instagram and other tech companies in video content.

This comes after Netflix has changed its offer for Warner Bros to an all-cash bid valued at approximately $82.7 billion, partly in order to position itself better against other bidders and in light of the competitive pressures in the video and entertainment sector.

Sarandos’s statements are indicative of Netflix’s realisation that the competition for audience engagement and advertising dollars has expanded to include social media platforms and tech giants.