YouTube’s Direct Funding to Creators: Keeping Content Off Netflix
August 20, 2026 – 10:05 am
YouTube is offering multi-million-dollar packages to its largest creators to prevent them from licensing their work to Netflix. According to Bloomberg‘s reporting, several agreements are close but none have been signed yet.
The offers take three forms: direct financing for creators’ shows, a share of YouTube’s brand deals with advertisers, and upfront cash. In return, YouTube wants exclusive windows for content to stay on its platform. This shift marks a departure from the traditional ad revenue split model.
Direct funding for creators is similar to studio commissions rather than platform payouts. It gives YouTube the power to choose which channels receive capital. The reported downside is that creators who accept Netflix money alongside a YouTube deal may lose access to YouTube’s marketing efforts, events, and brand campaign promotions.
Neither company has commented publicly on the terms, and the information relies on people familiar with the negotiations. Notably, YouTube has not requested total exclusivity but rather a period of exclusivity.
Netflix, in contrast, has been acquiring licenses for YouTube creators’ content, offering non-exclusive deals that allow creators to keep their channels, ad income, sponsorships, and merchandise while Netflix pays for distribution rights. This strategy has proven successful as creators are typically willing to accept licensing over leaving their existing platform.
Over 18 months, Netflix has signed deals with prominent creators like Rachel (2025), Mark Rober (August 2025), the Stokes Twins (July 2026), and others including Rhett & Link, Jordan Matter, and Nick DiGiovanni. They have also acquired podcasts wholesale, such as Jay Shetty’s show through a $100 million arrangement with Spotify.
Netflix claims these moves are successful, citing Rachel’s videos generating 126 million views on the service in one reporting period, despite remaining freely available on YouTube.
YouTube’s total revenue surpassed $60 billion in 2025, and they’ve paid more than $100 billion to creators over four years. This shift is about gaining attention rather than revenue, with advertisers arguing that YouTube is the best place to reach a given audience. A show available on both platforms weakens this argument.
YouTube has also tightened its Partner Program requirements and ended broad revenue sharing in favor of paying for original work, aligning with X’s recent changes. There’s a precedent for how this could end, as similar strategies have been employed before.