Is Netflix diluting its brand with its YouTubeification?

PLUS: I don't believe publishers who say they're willing to remove themselves from Google's search index.

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Is Netflix diluting its brand with its YouTubeification?

That’s the question discussed in this Puck piece about Netflix going on a licensing spree for cheap-to-produce video content that previously appeared on publishers’ YouTube channels:

Part of the YouTube-style content shift is just diversification. Netflix leans on pricey originals for engagement more than any rival, per Luminate, and its recent pursuit of Warner Bros. Discovery was as much for library content as I.P. So call this a pivot to cheap filler, potentially freeing money for more international shows and sports …

Outside of the fact that it’s all but impossible, there’s no reason for Netflix to truly become YouTube. Think about it this way: If YouTube (via Shorts) and Instagram (via Reels on TV) end up looking mostly the same with a similar batch of non-exclusive creators, then what’s the differentiation? This is where Netflix’s … exclusivity and brand matter most in the long run.

I think it’s worth noting that the logic behind Netflix’s expansion into lower-cost content is almost identical to the thesis David Zaslav used to justify the merger of Discovery and WarnerMedia. His vision was to create a “super app” that combined HBO’s prestige programming with Discovery’s inexpensive reality shows. The idea was that, while subscribers waited for new episodes of their favorite prestige series, they’d spend their time watching shows like Deadliest Catch and Naked & Afraid.

Of course, that strategy was a total flop. HBO Max’s growth never really accelerated, and Zaslav was merely saddled with a mountain of debt that he needed to pay off. The company would still be limping along if not for David Ellison swooping in and overpaying for it.

I get why Netflix feels the need to broaden its content library to compete with YouTube, but this move comes after it aggressively and repeatedly raised its subscription prices. Will customers paying $26 a month for its premium ad-free tier begin to notice that their home screen is suddenly full of videos they could otherwise watch for free on YouTube?

I think it’s really going to come down to the accuracy of its recommendation algorithm. If it can show these videos to those most likely to watch them while mostly hiding them from those who don’t, then it can avoid the perception that it’s swapping out its highly-produced television for internet content.

ICYMI: How Josh Spector monetizes his 25,000 newsletter subscribers

He does it through a mixture of consulting, advertising, and paid subscriptions.

That case study actually sits behind a paywall, but if you’re not ready to subscribe, I also included it in an ebook that you can download over here.

Quick hits

There’s yet another app that siphons away publishers’ affiliate revenue by inserting its own affiliate code at the time of purchase — all without the user’s knowledge. At this point, the only way for publishers to guarantee they get full credit for purchases is by driving audiences to their own drop shipping sites. [Bloomberg] (BTW, I used a gift link so you can access that article for free.)

This is a fun story about a New Yorker who’s being treated as a hoarder by his landlord simply because he keeps 10,000 books in his studio apartment. [NYT] (BTW, I used a gift link so you can access that article for free.)

With his snack brand Feastables, MrBeast set his sights on supplanting chocolate giants like Nestle and Mars Wrigley, but the company has lost a lot of its early sales momentum. Creators are good at splashy product launches, but can they get repeat customers? [Business Insider]

Following the success of Obsession and Backrooms, Hollywood studios are engaged in a deal frenzy to license YouTuber IP. For example, 11 studios just bid for a science fiction YouTube series that racked up over 16 million views on its first episode, which was published in 2021. [WSJ] (BTW, I used a gift link so you can access that article for free.)

An a16z-funded startup is openly bragging that it aims to create an army of bots designed to trick consumers into thinking that real humans are endorsing products on platforms like TikTok and Instagram. [New York]

Media outlets claim they’re contemplating blocking Google’s crawlers if it refuses to separate its AI bots from its search bots. I’ll file this away in the “I’ll believe it when I see it” bin. Google still sends mountains of traffic to websites, and I’m very skeptical that any outlets have the guts to pull the plug. [Adweek] As a side note, check out this fascinating Rebooting interview with Neil Vogel, the head of People Inc, about his decision to block all non-Google LLMs and how it gave him the leverage to force bespoke licensing deals with most of the major AI companies.

Publishers are placing “as seen on TikTok” badges on the covers of books, supposedly to denote that a particular title was well-received on BookTok. I feel like this badge will become increasingly useless, since nearly anyone can slap it on. [New Yorker]

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Why an NPR reporter left his job to launch a media startup in Ukraine

The war in Ukraine has given rise to an entirely new generation of independent media organizations, but few have a backstory as unusual as The Counteroffensive. Founded by veteran journalist Tim Mak after more than a decade covering politics, national security, and investigations for outlets including NPR, Politico, and The Daily Beast, the publication began as a one-man Substack chronicling life inside wartime Ukraine. In just a few years, it has evolved into a growing media company with multiple publications, a team of reporters across Europe, and an expanding portfolio that spans consumer journalism, defense intelligence, and postwar reconstruction.

In our interview, Mak explained how an unexpected career pivot led him to launch a newsroom from Kyiv, why he believes text-based journalism—not podcasts or video—remains the strongest engine for paid subscriptions, and how he’s building a diversified media business designed to outlast the war itself.

You can watch the interview on YouTube.

If you want to listen to an audio version, subscribe to the Business of Content wherever you get your podcasts: [Apple] [Spotify]