Two years ago, YouTube abandoned its audacious plan to beat Hollywood at its own game.

The video platform had tried to build the next Netflix but didn’t gain traction. So it cancelled the shows and fell back on the user- created content that had made it a household name

It looked like a major concession — a failure, even. It turned out to be just a speed bump.

Now, YouTube consistently ranks as the most popular streaming service on US televisions. The platform’s unlikely ascent to the top of the leaderboard shows that more than a decade into the streaming era, the Internet has continued to change the nature of TV and the habits of viewers.

YouTube’s viewership on TVs jumped during the pandemic, when people were stuck at home and willing to consume more content. The trend has continued, in a sign of growing interest in a more laid-back TV experience. The platform’s popularity underscores the sharp differences between YouTube’s hands-off approach to content creation and the billion-dollar bets of media companies like Disney, Paramount and NBCUniversal.

Since Netflix started offering original content in 2012, TV networks have jumped into the streaming race, trying to outflank one another with major upfront investments. Netflix alone spends $17 billion a year on new series and movies as well as on older fare from other companies’ libraries.

On YouTube, ordinary creators decide what to make and cover production costs. If a video racks up views and ad dollars, YouTube sends the creators 55 per cent of that revenue. If a video flops, it doesn’t lose any money. The company says it has paid creators and partners $70 billion over the past three years — but always after it has made money, without having to take financial risks.

The decision to leave content decisions with creators was the most important lesson the company learned, Neal Mohan (in pic), YouTube’s CEO, said in an interview. “Our creators are much better at predicting what our fans and audiences want,” he said. “This is television remade for a new generation.”

So far, it has struck a chord. Mohan said 150 million people in the US look at YouTube on televisions each month, and they watch the same things that are popular on phones: stunts from Mr Beast, YouTube’s biggest creator; music videos; and even TikTok-style vertical videos called Shorts.

YouTube has topped the list for streaming time on a TV for 17 months in a row, according to data from Nielsen, which tracks TV viewership. In June, its share ballooned to 9.9 per cent, setting a record for any streaming platform. That does not include viewers watching from a phone, tablet or computer. Nor does it include the YouTube TV app, which offers traditional network and cable channels for a fee.

In May, roughly 48 per cent of its TV viewership was from people younger than 34, Nielsen found. Netflix, by comparison, had 43 per cent of its viewership from that age group. Only Disney+, with its child-friendly content, does better in that demographic. YouTube also has strong viewership totals among Black, Asian, Hispanic and Spanish-speaking households.

Rhett McLaughlin and Link Neal started uploading comedy videos to the platform in 2006. Now their channels have a combined 31 million subscribers. On their daily talk show, Good Mythical Morning, they interview celebrity guests and goof around in low-stakes experiments. They have tried traditional TV and haven’t always been fulfilled, so they are sticking with YouTube, where they have “creative freedom”.

Half of Michelle Khare’s viewers watch her videos of high-stakes challenges on TVs. In one, “I Tried Houdini’s Deadliest Stunt”, she tried to get out of handcuffs and chains while holding her breath underwater. More than 5 million people tuned in and found that (spoiler alert) she succeeded.

The challenge took a year to come together, which she said would not have been possible on traditional TV. “We’re not bound to a production pipeline,” she said. “The culture of YouTube rewards creative risk.”

NYTNS