Netflix Poised to Overtake YouTube in Video Revenue by 2025, Omdia Forecasts Shift in Streaming Economics

A new Omdia report projects that Netflix will eclipse YouTube in video revenue by 2025, signaling a transformative pivot in the digital content economy fueled by automation, subscription loyalty, and premium advertising models.

In a major reshaping of the video-streaming economy, Netflix is projected to surpass YouTube in total video revenue by 2025, according to research firm Omdia. The forecast underscores a critical shift in how platform automation, content monetization models, and user behavior are converging to reshape the digital media hierarchy. Omdia estimates Netflix will generate $18.3 billion in video revenue in 2025—edging past YouTube’s projected $17.2 billion. This milestone, while symbolic, highlights a significant pivot: from free, ad-supported content models toward subscription-based ecosystems fortified by high-margin premium offerings and increasingly sophisticated automation. Netflix’s lead is driven not only by subscriber loyalty and a surge in global account growth, but also by its automated content delivery and recommendation systems, which enhance engagement, retention, and ultimately revenue per user.

While YouTube retains a colossal user base, its reliance on advertising is vulnerable to broader economic fluctuations and evolving privacy regulations. Netflix, by contrast, has layered its core subscription model with new ad-supported tiers and strategic licensing of third-party content. Moreover, automation in content operations—from AI-curated trailers to production scheduling—continues to optimize its cost-to-value ratio, giving the platform scalability with precision.

For businesses navigating media investments, this shift signals more than a revenue milestone. It reflects how automation-led strategies are redefining value capture in entertainment. Executives in advertising, content licensing and platform development will need to recalibrate strategies to engage users on platforms prioritizing data-backed personalization and direct monetization. The message is clear: media value is tilting toward platforms that master automation, hybrid monetization, and premium user experiences. In this new landscape, Netflix isn’t just streaming—it’s rewriting the rules of digital content economics.