Alphabet Inc (NASDAQ:GOOGL)(NASDAQ:GOOG) is positioning YouTube to lead the next phase of digital entertainment as competition with streaming platforms such as Netflix, Inc (NASDAQ:NFLX) intensified.
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YouTube Doubles Down on Creators and Content
YouTube said it would use its scale, community and tech investments to lead the next era of the creative industry.
YouTube noted that creators are reshaping entertainment and building the media companies of the future, and the company wanted to keep making YouTube the best place for them to grow their businesses.
YouTube said creators now drive the most significant cultural moments and reinvent entertainment across every format and screen, from long-form video and shorts to music, livestreams, podcasts, and more.
Shorts now average 200 billion daily views.
The company also planned to keep investing in music discovery.
On YouTube TV, YouTube said it would launch fully customizable multiview and introduce more than 10 specialized plans across sports, entertainment and news.
Creator Economy and AI Power YouTube’s Strategy
To power the creator economy, YouTube said it paid over $100 billion to creators, artists and media companies in the past four years.
The company said it would keep expanding monetization tools, including shopping and brand deals.
YouTube said it would also “supercharge and safeguard” creativity with AI.
The company noted that AI already powered recommendations and enforcement, and it planned to expand AI creation tools.
Netflix Results Highlight Competitive Backdrop
YouTube’s push came as Netflix reported stronger fourth-quarter results, driven by higher prices, membership growth and rising advertising revenue, while offering mixed guidance for 2026.
The company posted fourth-quarter revenue of $12.05 billion, up 17.6% year-over-year and above expectations, and earned 56 cents per share, topping estimates.
Netflix said it surpassed 325 million paid subscribers during the quarter and delivered double-digit revenue growth across all regions.
Looking ahead, Netflix said it would focus on strengthening its core business, expanding live programming and video podcasts and sustaining long-term growth.
For the first-quarter of 2026, Netflix expected revenue of $12.16 billion and earnings of 76 cents per share, both slightly below Wall Street estimates.
For full-year 2026, the company forecasted revenue of $50.7 billion to $51.7 billion, supported by higher membership prices and a doubling of advertising revenue year over year.
GOOGL Price Action: GOOGL stock traded higher by 1.38% at $326.55 at publication on Wednesday.
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