Netflix vs YouTube
Business model, scale, and a side-by-side Litmus framework score — which model wins, and for whom.
YouTube out-earns Netflix overall and wins TV watch-time, but Netflix wins on premium ARPU and owned originals.
At a glance
| Metric | Netflix | YouTube |
|---|---|---|
| Revenue | $45.2B (FY2025, +16% YoY) | $60B+ (Ads + Subs, CY2025) |
| Profit | $11.0B (FY2025 Net Income) | Not disclosed (Alphabet segment) |
| Active users | 325M+ Paid Subscribers (end 2025) | ~2.7B MAU |
| Employees | ~14,000 | Part of Alphabet |
| Founded | 1997 | 2005 |
| HQ | Los Gatos, CA | San Bruno, CA |
LLitmus Framework Score
Overall: Netflix 92 · YouTube 93
Customer Segment
98
99
Value Proposition
95
98
Marketing Channel
92
95
Engagement
96
92
Income Source
94
90
Asset Validation
90
96
Core Operations
95
90
Strategic Alliance
85
85
Expense Validation
80
90
Netflix leads 3 modules, YouTube leads 5. Overall edge: YouTube.
Head to head
| Dimension | Netflix | YouTube |
|---|---|---|
| Revenue | $45.2B (FY2025) | $60B+ (CY2025, ads + subs) |
| Users | 325M+ paid subscribers | ~2.7B monthly users |
| Content model | Owned/licensed premium originals | Free user-generated video, 55% creator split |
| US TV watch-time | Strong, behind YouTube | #1 streaming source (Nielsen) |
| Profit profile | 29.5% op. margin, $11.0B net income | Not disclosed (Alphabet segment) |
FAQ
Is Netflix or YouTube a better business?
YouTube out-earns Netflix overall and wins TV watch-time, but Netflix wins on premium ARPU and owned originals. It depends on what you optimise for — see the module-by-module breakdown above.
What is the difference between Netflix and YouTube's business model?
Netflix operates in Entertainment (See what's next), while YouTube is Entertainment (Broadcast Yourself). Their revenue, scale and Litmus scores are compared in detail above.
Which is more profitable, Netflix or YouTube?
Netflix: $11.0B (FY2025 Net Income). YouTube: Not disclosed (Alphabet segment).