Streaming Wars: 1 Netflix Rival Dominating the Industry

The Motley FoolFeb 15, 2026 4:20 PM

Key Points

Alphabet's YouTube produced more than $60 billion in revenue in 2025, 33% more than Netflix.
YouTube continues to lead in engagement when it comes to TV viewing time in the U.S.
The presence of a powerful network effect supports YouTube’s staying power.
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In 2025, Netflix reported $45 billion in revenue, up 16% year over year. It has 325 million subscribers, with a presence in over 190 countries. And with some of the most popular TV shows out there, this business certainly gets credit for pioneering the future of video entertainment.

But there's another platform that's dominating the industry. And it should get more attention than Netflix, which is considered the premier streaming stock.

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Image source: Alphabet.

Just one part of a powerful technology enterprise

Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) is a successful internet enterprise with many thriving segments. So, it's no surprise if YouTube gets overshadowed sometimes. But that shouldn't distract investors from focusing on just how excellent this platform is.

YouTube exceeded $60 billion in revenue in 2025. About $40 billion came from ads, while the rest was derived from subscriptions. From a sales perspective, YouTube is 33% bigger than Netflix.

YouTube Music Premium, a direct rival to Spotify and Apple Music, is seeing robust growth. Moreover, NFL Sunday Ticket is boosting subscriptions. Podcasts and Shorts are also driving engagement.

And "AI (artificial intelligence) is transforming the YouTube experience for both creators and viewers," according to CEO Sundar Pichai.

Netflix's current market cap is $349 billion. It wouldn't be surprising if, on a stand-alone basis, YouTube is worth more.

Winning the battle of the living room

It's not exactly a fair comparison for Netflix, which invests billions upon billions to license and produce content. That's because YouTube specializes in user-generated content. However, the data is hard to ignore.

YouTube "remains the No. 1 streamer in the U.S. for nearly three years, according to Nielsen," said chief business officer Philipp Schindler. With a 9% share of TV viewing time in the U.S. in the month of December for Netflix compared to 12.7% for YouTube, the latter is winning the battle of the living room.

YouTube also possesses a powerful network effect, which might make it one of the most durable internet properties on the face of the planet. The platform becomes more valuable over time, as it improves the larger it gets. More viewers and engagement that come to YouTube provide a lucrative environment for content creators who want to monetize their videos. And with more content being uploaded to the site, people with entirely different interests can always find something to watch, increasing engagement.

Meanwhile, Alphabet's technological engine is working in the background, refining the algorithm to constantly enhance the entire system. Netflix has an uphill battle to win more viewership.

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Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Apple, Netflix, and Spotify Technology. The Motley Fool has a disclosure policy.

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