Sources: YouTube is offering top creators millions to post videos exclusively on YouTube for a period and will penalize those that post to Netflix concurrently (Lucas Shaw/Bloomberg)

As YouTube seeks to counter Netflix's strategy of luring top creators, the platform is offering millions of dollars to some of its most popular creators. The payments may come from direct financing of programs or through a share of major brand deals, according to sources familiar with the discussions. YouTube is close to agreements with several creators but has not finalized any deals yet. The negotiations, however, are ongoing and sensitive.

Netflix has been actively pursuing prominent YouTubers, signing creators like Alan Chikin Chow and Nick DiGiovanni. The streaming giant is also in talks with dozens of other creators, channels, and programs. This push allows creators to earn millions from their content while gaining access to Netflix's over 325 million subscribers. However, YouTube warns creators that posting the same videos on Netflix could negatively impact viewership on its platform.

Creators who opt for Netflix deals may see their relationship with YouTube change. YouTube may feature them in marketing campaigns or at company events less frequently, and they could be excluded from participating in major brand campaigns. Some creators have already declined Netflix deals due to concerns like Netflix's requirement for videos to be delivered several days ahead of publication, which does not suit many YouTubers' workflows.

Additionally, requests to remove certain brand sponsorships from videos have deterred some creators.

The competition between YouTube and Netflix has intensified as both platforms operate in overlapping parts of the video market. Netflix, established on subscription streaming and Hollywood-style content, is now targeting YouTube's creators to attract younger audiences and increase engagement. YouTube, on the other hand, has been expanding into television viewing and advertising, securing rights to major live events.

The rivalry has escalated in recent months as Netflix targets some of YouTube's biggest channels. YouTube CEO Neal Mohan has previously stated that creators working with competing platforms typically continue using YouTube as their primary distribution channel. However, the growing number of simultaneous content distribution on both platforms has prompted YouTube to reconsider its stance.

The company traditionally avoided becoming a traditional studio, funding creators, and influencing their programming. YouTube also faces the challenge of keeping thousands of creators engaged if only a select few receive direct financial support. The strategy of exclusive or simultaneous distribution deals poses a threat to YouTube's pitch to advertisers, as it becomes harder to showcase the value of YouTube audiences when the same content is available on Netflix.

This move reflects a broader shift in the streaming business, with Netflix and YouTube competing not only for viewers but also for the creators who sustain their success.