YouTube is in early talks to pay top creators millions for exclusive content, a direct response to Netflix's push into creator licensing and video podcasts.
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YouTube is in talks to pay top creators millions of dollars to keep their videos exclusive to its platform for a set period, two people familiar with the discussions told Business Insider.
The conversations mark the clearest sign yet that YouTube sees Netflix as a direct threat. Bloomberg's Lucas Shaw first reported the outreach.
One person familiar with YouTube's efforts said the company has approached a handful of creators. Deal terms vary by creator, and YouTube has not set a deadline to finish the talks, the person added.
A second person who has had direct conversations with YouTube said the talks started in recent weeks. In one case, YouTube made a verbal offer worth "in the millions" in exchange for a period of exclusivity. The offer was preliminary and had not reached detailed negotiations, this person said.
The same person said YouTube also signaled that creators who decline exclusivity could lose perks like marketing support and access to brand deals.
YouTube has historically relied on its ad-revenue-split model and avoided direct payments to creators, though it has made exceptions before. The new approach suggests the company is feeling pressure from Netflix, which has been licensing content from superstar creators such as Ms. Rachel and Salish Matter. Those videos have appeared on both Netflix and YouTube.
Netflix also pushed into video podcasts this year, signing deals with "The Bill Simmons Podcast" and "The Breakfast Club." In several of those deals, Netflix required the podcasts to be removed from YouTube.
Talks are ongoing, the people said. No deals have been finalized.
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