YouTube’s Standalone Valuation Could Eclipse Netflix
Alphabet's YouTube division emerges as a formidable contender in the streaming wars, with a potential valuation rivaling Netflix. The platform's 2.5 billion monthly active users and $476 billion implied worth—based on Netflix's price-to-sales multiple—highlight its undervalued position. Unlike Netflix, YouTube's revenue streams extend beyond ads to include subscriptions, a segment not fully captured in current estimates.
YouTube commands 13.1% of U.S. daily TV viewing time, surpassing Netflix's share. Its asset-light model, which avoids upfront content costs, and a virtually infinite content library tailored to diverse demographics underscore its structural advantages. The platform's network effects and scalability position it as a unique player in the digital entertainment landscape.
