Netflix (NFLX) and Other Streaming Platforms Are Poaching YouTubers

Streaming services like Netflix (NFLX), Amazon Prime Video (AMZN), and Hulu (DIS) are working more closely with social media creators than ever before, according to The Information. Indeed, over the past year, these platforms have launched or announced more than 25 new shows featuring YouTubers and influencers, as they see creators as a safer and cheaper alternative to developing completely new shows. Meanwhile, creators are excited about reaching new audiences on major streaming platforms, but are cautious about losing views—and money—on YouTube (GOOGL) if episodes air exclusively elsewhere.

To solve this problem, streaming services have started offering more flexible deals. For example, Netflix has licensed older YouTube episodes and even agreed to stream new shows at the same time they launch on YouTube. It has also launched new original content made by creators. Interestingly, these strategies are similar to how streaming services once licensed reruns from TV networks, which helped boost viewership while keeping costs lower than major TV hits.

Unsurprisingly, other platforms are following this trend too. In fact, Peacock (CMCSA) has added shows from creators like Ryan Kaji and launched scripted series by influencers like Katie Florence. Free, ad-supported services like Roku’s (ROKU) The Roku Channel, Tubi, and Samsung TV Plus (SSNLF) are signing deals with YouTubers as well, and often include upfront ad payments and revenue-sharing. In addition, some platforms, like Netflix, even help creators sell merchandise, just like it has done with Stranger Things.

Is NFLX Stock a Good Buy?

Turning to Wall Street, analysts have a Moderate Buy consensus rating on NFLX stock based on 29 Buys, 10 Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average NFLX price target of $1,188.16 per share implies that shares are fairly valued.

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