Netflix (NASDAQ: NFLX) is a leader in the streaming industry, and it’s been dominant even as other rivals have struggled to turn profits.
But its most significant rivalry may still be in its early stages, involving Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL), the tech company that owns Google and YouTube
As Netflix has diversified by getting more content creators on its service and venturing into live sports, YouTube has also expanded. And its most recent move may be the clearest evidence yet that the tech company may be going after Netflix’s core audience. YouTube Premium will provide subscribers with access to Peacock’s streaming service The main reason for users to buy a YouTube Premium subscription today is to avoid ads on YouTube.
But the company is giving consumers even more of an incentive, as it recently announced that YouTube Premium subscribers in the U.S. will also be able to access the ad-supported version of Peacock Premium, the streaming service Comcast owns. In addition, some sporting events from NBCUniversal (which is part of Comcast) will also be streamed on NBC’s YouTube channel. This agreement makes a subscription to YouTube Premium potentially a more compelling option than Netflix, whose content relies heavily on its own shows and movies and on content it can license.