Hi there! My name is Janko Roettgers, and this is Lowpass. This week: Netflix vs. YouTube, and Mindshow shuts down.

New data shows why Netflix is embracing live TV (spoiler alert: it’s all about YouTube) 

When Netflix reported its Q2 earnings earlier this month, executives gave us a bit of a sneak peak at a very different future for a company best known for on-demand binge watching: One in which live streaming will play a much bigger role, to the point where there will always be something “on” whenever you fire up the Netflix app.

A big part of that strategy has been the recent relaunch of Netflix’s TV app, but the company is also looking to significantly expand the content mix available to customers. A first hint at what’s coming is the recently-announced deal with French broadcaster TF1, which will make its linear channels available within the Netflix app, while also providing Netflix with a bunch of on-demand content. During their Q2 earnings call, Netflix executives hinted at plans to strike similar deals in other territories. 

In other words: After successfully stealing audience share away from linear TV for years, Netflix is now embracing linear programming itself. A key reason for that is another major disruptor that has been increasingly changing how the world watches TV: YouTube.

For this week’s Lowpass newsletter, I decided to take a closer look at what Netflix is doing with live programming, how its product design and licensing decisions foreshadow its embrace of live and linear, and how new data from UK media regulator Ofcom points to YouTube’s rise as one of the key motivating factors behind Netflix’s change of heart.

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