Netflix says competition now goes beyond streaming platforms

Netflix says it is no longer competing only with other streaming platforms. On the company’s recent earnings call, co-CEO Ted Sarandos said the real battle is for people’s time across a wide range of entertainment options. That includes broadcast and cable TV, live sports, gaming, social media, and big tech video platforms.

“More broadly, we compete for people’s attention across an even wider set of options that include streaming, broadcast, cable, gaming, social media, and big tech video platforms,” Sarandos said.

According to The Hollywood Reporter, this framing could support Netflix’s defense for pursuing a major acquisition of Warner Bros. Discovery’s studios and streaming business. The company is pressing an offer valued at about $82.7 billion, arguing that scale and content breadth are becoming necessary as audience attention spreads thinner across platforms.

Sarandos: TV is now just about everything

Sarandos said TV is no longer a single category. On the earnings call, he said the company now sees rivals across a much wider set of platforms and formats. “The TV landscape, in fact, has never been more competitive than it is today,” he said. “TV is not what we grew up on. TV is now just about everything.”

Sarandos named YouTube and Instagram as platforms that Netflix now competes with directly. He said the lines around TV consumption are already blurring as content moves between linear channels, streaming services, and social platforms that are increasingly present on the living room screen.

Instagram, in particular, was cited as an emerging TV competitor. Sarandos said, “Instagram is coming next.” Reels, which started as phone-first short clips, are now being positioned for TV screens and are reportedly being tested as a standalone app. That shift moves short, repeatable video into shared viewing spaces that were once dominated by broadcast TV and streaming apps.

YouTube’s expanding role in TV viewing

Sarandos also pointed to YouTube’s evolution. He noted that the platform has moved far beyond user-generated clips. It now carries long-form programming, live events, and sports that can hold attention for hours, the same attention Netflix needs for its series and films. “So we all compete with them in every dimension, for talent, for ad dollars, for subscription dollars, and for all forms of content,” he said.

In October, YouTube redesigned its TV interface, aiming to strengthen its position on connected TVs. The update put YouTube in more direct competition with services like Netflix and Amazon Prime Video for time spent on the biggest screen.

Advertising sits at the center of the argument

Sarandos tied Netflix’s competitive view closely to advertising. Ad dollars follow attention, and attention is now fragmented across formats and devices. “There’s never been more competition for creators, for consumer attention, for advertising and subscription dollars,” he said.

If a platform can drive frequent short visits every day or deliver massive audiences for a single live event, advertisers will move budget there. Platforms such as social apps and large live broadcasts can capture the same hours advertisers pay to reach on TV or streaming.

Netflix has said a large share of its viewing now happens on its ad-supported tier, and ad revenue continues to grow. This shows the company is already part of this market, but it also shows how mobile and competitive ad dollars have become.

Different types of attention carry different commercial value. Live sports and awards shows create a big, concentrated reach that advertisers prize. Short-form feeds create high frequency and precise targeting. Long-form series build deeper engagement, but generate fewer daily touchpoints. 

Netflix’s message is that it needs to operate across all of these attention types to defend and grow ad revenue.

Netflix is pitching product changes and scale as responses

Netflix could respond to this competition in several ways. The company is planning a major app redesign this year, building on recent changes to its TV interface. Co-CEO Greg Peters said during the earnings call, “Just as you’ve seen us do with the new TV UI, we’re working on a new mobile UI that will better serve the expansion of our business over the decade to come.” Netflix has also moved into video podcasting, a format closely associated with YouTube, as it looks to capture more viewing time and creator interest.

The proposed Warner Bros. Discovery acquisition fits into this strategy. Company leaders claim the deal would add theatrical releases, HBO’s premium programming, and deeper production capacity. Netflix argues these assets would help it compete not just with other streamers, but with any platform drawing consumer attention.

However, investors have had mixed reactions as the company balances product changes, ad growth, and the cost of the Warner bid.