YouTube Is Reportedly Offering Creators Millions To Post Exclusively On Its Platform — Here’s Why – AfroTech
YouTube wants to better leverage the star power of its creators.
Bloomberg reports that the video-sharing and social media platform is encouraging creators to share content exclusively on its platforms, with compensation coming through funded programs or brand deals.
Some creators have been offered millions of dollars in compensation if they comply, per the outlet. No formal deal has been signed with a creator (as of this writing), although YouTube is nearing agreements with several partners.
The strategy is part of YouTube’s broader effort to compete with Netflix. Working with Netflix could allow some creators to earn millions and expand their fan bases thanks to its 325 million subscribers, Bloomberg notes. Netflix is reportedly in talks with popular YouTube channels, including “Hot Ones,” a show in which Sean Evans interviews talent such as Keke Palmer while they eat a range of hot wings. The show currently has 15.7 million subscribers on YouTube.
Creators including Alan Chikin Chow and Nick DiGiovanni are being paid to post on both platforms, while several creators have already opted out of working with Netflix, the outlet reports. Some issues creators point out, include having to provide videos days in advance as well as being unable to receive proceeds from certain brand campaigns, per Netflix’s request.
YouTube is seeking to discourage creators from working with Netflix. Sources told Bloomberg that creators who sign deals with Netflix could face repercussions, such as reduced exposure in YouTube marketing campaigns or being passed over for promotion at events, if a video is released on Netflix at the same time.
YouTube believes that creators posting on both platforms sends the message that they favor Netflix more, which could also affect YouTube’s viewership, according to Bloomberg.
YouTube CEO Neal Mohan was asked by Time whether YouTube will look more like Netflix, or Netflix will look more like YouTube, in the next five years.
“YouTube in its essence is going to continue to look a lot like it does today in the following sense, which is, as you pointed out, every day 2 billion+ people all over the world come to YouTube to connect with their favorite creators, creative person, content, sports, movies, music, you name it,” Mohan said. “And in its essence, that’s what YouTube is going to continue to be. Now, how it’s consumed, how that content is getting created, that is going to be transformed by technology.”
