Netflix licenses short-form video from 6 publishers to challenge YouTube

Netflix is licensing short-form video from six major publishers to compete with YouTube for the 13.4 percent of US TV viewing time the Google-owned platform commands.

Netflix is licensing short-form video from six major publishers, aiming to claw back viewing time from YouTube, which commanded 13.4 percent of US TV viewership in April versus Netflix's 7.8 percent, according to Nielsen data.

"It's another attempt to court low-cost engagement with lean-back pop culture programming," Brandon Katz, insights director at entertainment research firm Greenlight Analytics, said. "Netflix is trying to become a more habitual source of entertainment without having to pony up the premiums for hit-or-miss original programming."

Starting Aug. 3, subscribers in the US, Canada, UK, Ireland, Australia and New Zealand can watch videos ranging from three to 20 minutes from BuzzFeed Studios, Condé Nast, Hearst Magazines, Penske Media's PMX brands, People Inc. and Tastemade. Content includes Bon Appétit recipes, Vanity Fair's Lie Detector interviews, Architectural Digest's Walking Tour and Variety's How Well Do They Know? series. Additional publisher partnerships will be announced later, Netflix said.

The push marks Netflix's latest attempt to become a habitual daily destination rather than an evening binge platform, a shift that could reduce its reliance on expensive original programming while opening new advertising inventory. The company previously experimented with short-form video through a "Fast Laughs" feature in 2021 before shuttering it, then reintroduced clips earlier this year. Bloomberg reported this week that Netflix is struggling to retain viewers between the first and second seasons of its top shows, a trend that has worried executives as consumer habits shift toward short-form platforms.

Licensing Terms Relax as Netflix Courts Creators

Netflix has been offering publishers more relaxed licensing terms to speed up the addition of YouTube-style content, according to two people with direct knowledge of the discussions. During its initial push into video podcasts in 2025, Netflix insisted creators pull their shows from YouTube. The company has since dropped that requirement, now regularly discussing deals that allow creators to remain on both platforms.

"It's a real change," one person involved in the discussions said.

The shift creates a potential dilemma for creators, who must weigh whether appearing on Netflix will cannibalize their YouTube audiences and whether the licensing fees compensate for any lost viewership. Netflix did not disclose the financial terms of the publisher deals.

Competitive Stakes for Streaming's New Front

Other Hollywood streamers including Disney have also leaned into short-form clips over the past year, hoping to drive higher engagement and train users to open their apps throughout the day. Netflix's deals with major publishers give it a library of professionally produced short-form content without the cost of developing original programming in-house.

"These partnerships help us deepen fandom and create more ways for members to carry those stories with them throughout their day," John Derderian, Netflix's vice president of animation series and kids and family TV, said in a statement.

Netflix shares have gained roughly 15 percent this year as the company has expanded into advertising, live sports and gaming. The short-form video push adds another potential revenue stream, though the financial terms of the publisher deals were not disclosed. The company trades at about 30 times forward earnings, reflecting investor expectations that its ad-supported tier and content expansion will sustain growth as competition from YouTube and TikTok intensifies.

This article is for informational purposes only and does not constitute investment advice.