Netflix talks up podcasts and gaming as competition ‘blurs’
The streaming giant has long seen itself as a brand competing with all forms of leisure activity, not just fellow streamers or TV platforms.
Netflix is doubling down on its strategy of category expansion with investment in video podcasts and gaming, admitting the TV landscape has “never been more competitive”.
Competition for ad spend, subscription money, consumer attention and TV creators has never been more fierce, claimed Netflix co-CEO Ted Sarandos during the company’s results call yesterday (20 January). However, he also re-asserted Netflix’s long-held view that competition does not just come from other TV platforms and that competition is “blurring”.
“More platforms are making their way into the TV in your living room. So TV is not what we grew up on. TV is now just about everything,” he said.
The Netflix chief cited examples like Instagram’s plan to launch a Reels app for TV, the Oscars and NFL being on YouTube, and Amazon now owning film and TV company MGM. He highlighted YouTube in particular as having become a key competitor, stating the platform was no longer just cat videos and user-generated content.
We all compete with [YouTube] in every dimension for talent, for ad dollars, for subscription dollars and for all forms of content.
Ted Sarandos, Netflix
He cited data from Barb, the UK’s industry standard for measuring TV viewing, which found the monthly average audience of YouTube has now outpaced that of the BBC.
“We all compete with [YouTube] in every dimension for talent, for ad dollars, for subscription dollars and for all forms of content,” Sarandos said.
Netflix has long believed it competes “against all activities people engage with during their leisure time”. The streaming giant thinks the answer is to diversify its offering, alongside making moves to bolster its traditional TV and film offering.
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Earlier this month, Netflix began introducing video podcasts onto the platform, partnering with big players in the podcasting space, including Spotify, iHeartMedia and Barstool. The company has announced its first original podcasts, including with US comedian Pete Davidson.
The streamer is also continuing its investment in gaming, having introduced what it terms “TV-based party games” during its last quarter. This includes the likes of Boggle, Pictionary and Tetris, with more titles planned.
Co-CEO Greg Peters explained Netflix has been testing vertical video in its mobile app for around six months. That takes the form of a feed in app showing clips from particularly shows, mirroring how social media users consume videos on the likes of TikTok and Instagram Reels.
‘Exciting’ Warner Bros business
At the same time as expanding its entertainment offering, Netflix is also strengthening its slate of TV and film.
The firm is currently attempting to acquire Warner Bros’ film and streaming business, and yesterday (20 January) said it would switch to a cash offer to fend off rival buyers including Paramount. Netflix has offered to pay $27.75 (£20.68) per share for the streaming and film businesses, or roughly $72bn (£54bn).
Speaking during Netflix’s earnings call yesterday, Sarandos said the company is “working really hard to close the acquisition”.
There was some suggestion from investor questions the decision to quire Warner Bros had come from “stagnant engagement levels on Netflix today”. The executive team were keen to stress their optimism for the platform’s organic growth, with Peters insisting the service’s retention “is among the best in the industry”.
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The company’s leadership also stressed they went into the due diligence stage of talks with Warner Bros not as buyers, but with their “eyes open and […] minds open”.
“When we got into it, we both got very excited about this amazing opportunity,” Sarandos said.
There are two main areas that excite Netflix when it comes to the Warner Bros acquisition – its development and intellectual property, and its streaming service HBO Max.
Peters described HBO Max as “an amazing brand” and one that is “very complementary” to Netflix’s existing service.
Aim to ‘close the gap’ on ads
Reporting results for its fourth quarter of 2025, Netflix claimed to have “met or exceeded all of [its] financial objectives”. Across the year, revenue was up 16% to $45.2bn (£33.7bn), while ad revenue more than doubled to over $1.5bn (£1.12bn).
There is a gap between “average revenue per membership” in terms of the ad-supported tier and standard membership, noted Peters, who insisted the “gap is narrowing”. That gap “represents an opportunity” for Netflix to realise the full revenue potential of its ads-supported service, he said.
“As we improve our ads capabilities, we can close that gap over time,” Peters added.
He cited better data and tech capabilities, as well as introducing new features such as interactivity in its ads, as means to achieve this.
