Netflix’s warning in Brussels

Arriving in Brussels ahead of a review of Europe’s audiovisual rules, Netflix co-CEO Ted Sarandos delivered a clear message to EU policymakers: they are underestimating YouTube’s role in the TV market. In an interview with a European outlet, Sarandos said regulators are not fully reading how the viewing landscape has changed.

YouTube is no longer just short clips

Sarandos argued that YouTube has evolved from a social platform into a direct rival for television. He put it plainly: "YouTube is a straightforward direct competitor for television, either a local broadcaster or a streamer like Netflix." His point is that the connected TV market is competitive in a very direct way. Viewers pick one screen and that choice matters.

Television is where YouTube is growing

Regulators, he said, have not fully grasped that viewing habits are shifting from phones to living room screens. Sarandos pointed to a key stat: about 55 percent of all YouTube engagement now happens on televisions through their app. That migration, he said, is a central trend regulators should consider when updating rules.

Level playing field request

Given the move to connected TVs, Sarandos suggested that platform rules should treat video services more equally. He criticized the outdated view of YouTube as a "bunch of cat videos" and stressed that the platform is "in the same exact game that we are."

Why Europe matters to Netflix

Sarandos also used the Brussels visit to remind regulators that Europe is a major market for Netflix. The company said it generated roughly $3.5 billion to $3.8 billion in revenue in the region in the fourth quarter alone.

Over the past decade Netflix has invested heavily in local content. The company reports more than $13 billion invested in European productions, collaborations with over 600 independent producers, and support for over 100,000 cast and crew jobs across the region.

Aftermath of merger talks

Sarandos also reflected on recent talks with Warner Bros. Discovery, saying the merger discussions opened new lines of conversation with theatrical players. He described more engagement with theater operators and expressed hope for more creative relationships between streaming and cinema exhibitions globally.

He closed with a light remark about the public side of those talks. "I don't recommend testifying before the Senate again, but it was an interesting experience for sure," he said.