Netflix co-CEO Ted Sarandos has offered insights into the streaming giant’s foray into advertising, acknowledging the competition from established players like YouTube while asserting their dominance over traditional broadcasters.

In a recent interview, Sarandos revealed that while Netflix’s ad-supported tier is attracting viewers, it’s still early days for the platform’s advertising strategy. He emphasized that the focus remains on offering a premium experience without compromising on quality. This is in direct contrast to traditional broadcast TV, which he believes is facing a declining user base due to the rise of streaming.

“We’re seeing that advertisers are recognizing the value of reaching our engaged audience,” Sarandos stated, highlighting the platform’s “high-quality content and global reach.” However, he also acknowledged the fierce competition from YouTube, which has established itself as a major force in the online video advertising space.

Sarandos highlighted Netflix’s key differentiator: its ability to offer exclusive content and a personalized user experience. He believes this edge will be crucial in attracting advertisers and viewers alike. While the streaming giant faces a formidable challenge from YouTube, its commitment to high-quality content and innovative features could see it emerge as a significant player in the evolving advertising landscape.

The future of ad-supported streaming remains uncertain, but Netflix’s strategy is clear: cater to a discerning audience with a premium, personalized experience while navigating the competitive landscape of online video advertising.