YouTube Becomes the Centre of the TV Screen
A successful horror film thrives on suspense and uncertainty. A similar tension has been building quietly inside the boardrooms of major media companies, as YouTube’s expanding influence forces difficult strategic choices. Once seen mainly as a platform for short clips and user-generated content, YouTube has evolved into a central pillar of television viewing — and a growing source of unease for traditional broadcasters.
Owned by Alphabet, YouTube now hosts everything from Hollywood films to live news channels. According to estimates from Visible Alpha, the platform is expected to generate more than $70 billion in revenue this year, including subscriptions. Its role as an aggregator — similar in function to a traditional cable bundle — has helped YouTube secure the largest share of U.S. television-screen viewing for 11 consecutive months, according to Nielsen. Americans now spend more time watching YouTube on their TVs than streaming services such as Netflix.
Broadcasters Follow Audiences — At a Price
YouTube’s growing reach has pushed U.S. media companies to strike distribution deals that allow their channels to appear on YouTube TV, its live television service. In return, broadcasters receive affiliate fees, replicating the economics of legacy cable distribution in a digital format.
The platform has gone further by allowing users in selected markets, including the U.S., UK and Germany, to subscribe to third-party streaming services directly through the YouTube app. A viewer in London, for instance, can access parts of Paramount+ without leaving YouTube. While this expands reach for content owners, YouTube keeps a portion of the subscription revenue and avoids the costs associated with producing films or series.
The lack of transparency around deal terms makes it difficult to judge how balanced these partnerships are. Broadcasters must weigh the benefit of reaching viewers where they increasingly spend time against the risk of undermining their own streaming platforms, where they retain full control of advertising and subscription income. Under YouTube’s standard partner programme, the platform takes 45% of advertising revenue.
Public Broadcasters Test New Monetisation Paths
Acknowledging YouTube’s dominance among younger audiences, the BBC recently announced a partnership with the platform. Under the arrangement, the UK public broadcaster will commission original content designed to premiere on YouTube before appearing on its own channels and streaming services. While digital-first strategies are not entirely new — Channel 4 launched a youth-focused YouTube channel in 2024 — the move signals a shift in how broadcasters think about monetisation.
The BBC said it would run advertising on YouTube content viewed outside the UK, offering an additional revenue stream as it undergoes a broader funding review. However, this income is likely to remain modest compared with the licence fee, which generated £3.8 billion last year. The broadcaster plans to operate up to 50 YouTube channels, including seven aimed at children, a segment that is harder to monetise due to advertising restrictions.
Estimates from analytics firms suggest YouTube revenue per 1,000 views can range widely, underscoring the uncertainty media companies face. As YouTube media dominance deepens, broadcasters are left balancing visibility, control and long-term value — knowing the platform is both partner and rival.