During its recent fourth-quarter earnings call, Netflix spooked investors by saying it expects lower profits this year because it’s investing heavily in fresh content.
Now we know where a decent chunk of that investment is going: to signing deals with YouTubers.
Netflix co-CEO Ted Sarandos has referred to YouTube as a “farm league“–a sort of free incubator where Netflix can watch talent develop without doing anything to assist it. Then, once creators get big enough on YouTube, Netflix swoops in.
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That strategy has never been more apparent than over the last few months. Following its deal with kids’ creator Ms. Rachel, Netflix signed Mark Rober and Alan Chikin Chow in quick succession. It’s also signed for numerous podcasts from Barstool Sports and The Ringer, both of which air their shows as video series on YouTube (or at least they did, until Netflix came along).
Its latest deal, announced this week, scoops up Jordan and Salish Matter, the father-daughter team who have over 35 million subscribers and 300+ million monthly views on YouTube. Jordan, a career photographer, launched his channel in 2017, and Salish joined his videos around 2020, when she was 10 years old. Now 16, she’s the center of most of their content, which mostly falls into the challenge genre. She also recently launched a skincare brand, Sincerely Yours, with Sephora.
For most creator deals in previous months and years, Netflix sought to bring their already-published YouTube catalog to its platform. With Alan Chikin Chow, it signed for a new series, one it clearly hopes will be the next KPop Demon Hunters. (The show is described as one that “follow[s] a misfit crew of aspiring pop idol rejects enrolled in an arts academy who come together to form a co-ed band.”)
But its deal with the Matters might be its most expansive creator project yet. This agreement is a full-scale and exclusive development deal, where the Matters will “continue to develop their fan-favorite franchises alongside new projects exclusive to Netflix across scripted, unscripted, and animated series–all starring Salish, of course,” Netflix said. It noted that the deal also includes “partnership on consumer products and experiential offerings.”
We suspect the size of this deal is, like Chow’s, informed by KPop Demon Hunters: Netflix is on the hunt for another Gen Z-hype success, and this time is trying to get ahead of the game by locking in as many potential avenues as possible before something gets popular. It’s also locking horns with Hollywood via its pending acquisition of Warner Bros. Discovery, so perhaps we’re not too surprised to see Hollywood-sized deals.
“At Netflix, we are committed to working with the best creatives in the world, and Salish and Jordan Matter are unparalleled creators with a massive fandom and a vibrant, high-energy storytelling style that kids and family audiences instantly love,” John Derderian, Netflix’s Vice President of Animation Series, Kids & Family TV, said in a statement. “This perfectly complements our programming, and we’re thrilled they’ve chosen Netflix as their creative home. We look forward to fostering their vision and bringing exciting new projects to life.”
Jordan added that he and Salish are keen to partner with Netflix because the streamer is “unmatched in scale, vision, and global reach, and this collaboration allows us to expand the storytelling our audience already loves into new formats while staying true to the creative world we’ve built.”
“So many shows I love are on Netflix, and I can’t believe that soon I will have one of those shows,” Salish chimed in. “It’s a super exciting opportunity, and I can’t wait to start filming!”
