Netflix Inc. (NASDAQ:NFLX) Co-CEO Ted Sarandos on Thursday outlined why the streaming giant continues to hold an edge over YouTube, a subsidiary of Alphabet Inc.'s (NASDAQ:GOOG) (NASDAQ:GOOGL) Google.

What Happened: During Netflix's third-quarter earnings call, a question about YouTube's growing share of TV consumption was raised.

In response, Sarandos highlighted Netflix's commitment to investing in premium content to increase viewer engagement, stating, "Netflix is the best place for premium stories because we're the home to the best storytellers."

Regarding YouTube, he said, "When I look at YouTube specifically, I'd say look, we compete directly with YouTube for people's time, for the time they spend on that TV screen. But we have very different strengths."

Another, Netflix Co-CEO Greg Peters added that Netflix plays a crucial role for consumers seeking high-quality movies and TV shows, and for creators looking for partners willing to share the inherent risks of bringing stories to life.

"A Hundred Years of Solitude, Senna, both coming from Latin America, which are huge, ambitious projects. It's hard to imagine how those kind of big creative bets would be possible with YouTube's model," Peters stated.

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Why It Matters: Netflix's third-quarter financial results showed a 15% year-over-year increase in revenue, beating Street consensus estimates.

Moreover, Netflix's recent foray into live sports programming indicates a strategic shift from its traditional on-demand model. This move aims to capture high-impact moments and the excitement of global live events, further enhancing viewer engagement.

During the second-quarter earnings call, Netflix executives were asked questions about YouTube.

At the time, Sarandos said, "So our two services — us and YouTube represent about 50% of all streaming to the TV in the U.S. and we use the U.S. only because that's where we have the data."

"So really what we're focused on here is focusing ourselves on that other 80% of total TV time that isn't going to either us or YouTube," he said in July.

Sarandos reiterated Netflix's commitment to focus on the remaining 80% of the market during the third-quarter call too.

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