While platforms like YouTube and Netflix have been converging by competing for the same creators and content, the rise of AI could drive them apart again. As YouTube leans into AI tools and user-generated content, Netflix may double down on its curated, high-production identity, re-establishing a clear strategic distance between the two.

As AI-generated content or "slop" floods user-generated platforms like YouTube, Netflix has an opportunity to position itself as a premium, curated safe harbor. This dynamic could become a significant tailwind for its business, reinforcing the value of its human-gated content library in a world of infinite, low-quality noise.

For Netflix, the most critical strategic choice is not its stance on AI tools but its decision to forgo an open "upload button" for user-generated content (UGC). This commitment to professional curation is its fundamental differentiator against platforms like YouTube, creating a brand promise of quality that is more significant than its use of AI in production.

With a majority of internet content now AI-generated, publishing more of the same is a losing strategy. The competitive advantage lies in creating net-new information through original research, proprietary data, and genuine expert insights. Use AI to distribute this unique content, not just to create it.

As AI drives the cost of content creation to zero, the world floods with 'average' material. In this environment, the most valuable and scarce skill becomes 'taste'—the ability to identify, curate, and champion high-quality, commercially viable work. This elevates the role of human curators over pure creators.

While Generative AI will dramatically lower content creation costs, it will also lead to a massive explosion of new content. This dynamic decreases the value of existing IP libraries but massively benefits distribution platforms like Netflix and YouTube, which aggregate eyeballs and win in a world of content abundance.

The flood of AI-generated assets isn't a new problem but an amplification of an old one. It simply highlights that much of human-created content was already mediocre. AI removes resource barriers to production, making "taste" and "quality judgment" the true differentiators—skills that are now more valuable than ever.

Generative AI allows any marketer to quickly produce mediocre content. This saturation makes buyers more discerning and creates a significant opportunity for brands that invest in genuinely excellent, insightful content to stand out and build trust. Quality, not quantity, becomes the key differentiator.

The deal is less about consolidating media power and more about arming Netflix with a vast IP library to compete for attention against free, user-generated content platforms like TikTok and YouTube, which pose a greater existential threat.