If you can’t beat them, join them: Netflix’s Spotify deal is all about YouTube’s dominance

The streaming wars were fought and won. The clear victor was Netflix.

But while Netflix was facing down challengers Disney, HBO, Amazon and Apple, the entertainment business didn’t quite realise it was just a scrap, one battle in a larger war where another force was hoovering up all the eyeballs while they were distracted: YouTube.

YouTube has become the most dominant platform for viewing in the US. In July, YouTube accounted for 13.4 per cent of all viewing on TVs, compared to 8.8 per cent for Netflix. In Australia in the three months to June, Netflix was still marginally ahead (although it fell a percentage point) at 8.5 per cent to YouTube’s 7.9 per cent.

That’s only time on TV sets, not even mobile devices.

The YouTube growth story is complex and varied, but part of it is podcasts that are now filmed as video and uploaded on the Alphabet-owned platform. One survey from US company Cumulus Media found 72 per cent of podcast listeners preferred shows with video.

To that end, if you can’t beat them, join them.

Netflix signed a deal with Spotify to carry a raft of video podcasts mostly from The Ringer network including the popular sports program The Bill Simmons Podcast. Each episode of The Bill Simmons Podcast generally clocks up between 30,000 and 250,000 views on YouTube.

The agreement covers the US to start, with other territories to be added later, and will kick off in the new year.

It also includes from The Ringer network, The Zach Lowe Show, The McShay Show, Fairway Rollin’, The Mismatch, The Ringer F1 Show, The Ringer Fantasy Football Show, The Ringer NFL Show, The Ringer NBA Show, The Rewatchables, The Big Picture, The Dave Chang Show, Recipe Club and Dissect.

The Ringer’s podcast network was acquired by Spotify in 2020, four years after its launch, in a deal estimated at $US250 million.

The Netflix deal also includes two true crime shows from Spotify Studios, Conspiracy Theories and Serial Killers.

In April, Netflix co-chief executive Ted Sarandos was asked on an earnings call about Netflix’s plans in the video podcasting space. He responded, “We’re constantly looking at all different types of content and content creators.

“The lines between podcast and talk shows are getting pretty blurt. We want to work with kind of great creators across all kinds of media that consumers love. And podcasts have become a lot more video-forward.

“As the popularity of video podcasts grow, I suspect you’ll see some of them find their way to Netflix.”

When Netflix launched original programming in 2012, it was limited to scripted series such as Lilyhammer, House of Cards and Orange is the New Black. Its first original film landed in 2015, as did its first non-scripted series, the high-end Chef’s Table.

It has since expanded to take in a raft of originals away from the prestige space, including reality TV programs in the template of broadcast shows and working with influencers and YouTubers such as UK troupe The Sidemen and Australian duo Superwog.

The YouTube and Netflix rivalry isn’t only based on time, attention and subscribers (YouTube has 125 million subscribers to its premium paid products while Netflix’s last reported subscriber count is 301 million), it’s also for advertising revenue.

Netflix has increasingly turned to dollars from marketers since introducing an ad-supported tier in late-2022. By the end of March 2025, it had 94 million members subscribers to the cheaper option, but yields high returns from those users through a combination of fees and ad revenue.

YouTube reported ad revenues of $US50 billion for the 12 months to September 2024.

During its most recent financial reporting, Netflix predicted it would double its ad revenue for June to September 2025 from $US300 million to $US600 million.