Podcast Summary: Trends with Friends

Episode Title: Streaming Wars: Why YouTube Wins & Netflix Is Chasing the Wrong Prize
Host: Howard Lindzon
Guest: Farhad Massoudi (Founder, Tubi TV)
Date: December 17, 2025

Episode Overview

In this episode, Howard Lindzon is joined by Farhad Massoudi, founder of Tubi TV, for an in-depth discussion analyzing the state of the streaming industry, the ongoing bidding war between Netflix and Paramount for Warner Brothers, and why YouTube is positioned to be the ultimate winner in the streaming wars. The discussion is infused with industry insight, behind-the-scenes perspectives, personal anecdotes, and a candid critique of contemporary streaming strategies.

Key Discussion Points and Insights

1. Background: Who is Farhad Massoudi and What is Tubi?

• Tubi’s Origin and Growth:
  • Started by Farhad in 2011, launched in 2014 as a free movie and TV streaming service.
  • Acquired by Fox for over $500 million ("Sold it to Fox for half a billion dollars… It was reported incorrectly at 440. But who's counting? I was fighting for every penny." – Farhad, 02:50)
  • Now over 100 million monthly active users and over $1 billion in revenue; notably, Tubi is profitable (03:48).
• Farhad’s Unique Perspective:
  • Contrarian approach by betting on the "tail" (depth of content library) over "head" (hit originals) (04:32).

2. The Fragmentation of Media Consumption

• Rise of Niche and Fragmented Audiences:
  • Unlike the past (e.g., Walter Cronkite era), today's consumption is driven by personalization—evident in podcasting, music, and especially streaming (05:50).
  • "Media consumption has become more and more fragmented... The clear winner of the fragmentation of TV consumption is YouTube." – Farhad, 06:55
• YouTube as Market Leader:
  • YouTube excels in a fragmented environment, driven by algorithms and user-generated content (07:23).

3. Netflix/Warner Brothers Bidding War: An Expert Take

• Historical Context:
  • Warner Brothers’ rocky history includes failed mergers (AT&T in 2018, then Discovery in 2022), all built on shaky "bundling" theses that never materialized (09:32–12:31).
• Farhad’s Headline Opinion:
  • "Netflix is run by some of the smartest people in the industry. But I think this is a huge mistake." – Farhad, 09:31
• Why Farhad Thinks the Deal Is Bad for Netflix:
  • Licensed content is tied up in long-term deals, making immediate consolidation impossible (15:03).
  • International distribution (e.g., with Sky in the UK) is locked down, so Netflix couldn’t leverage all of Warner’s catalog worldwide (16:27).
  • The real threat isn’t traditional studios—it's YouTube, especially in terms of engagement, not catalog depth (13:57).
  • Buying legacy media is a defensive move, not a growth driver (13:58–14:31).

4. Why YouTube Is the Real “Winner”

• Algorithmic Curation and Creator Economy:
  • YouTube’s recommendation system and the power of user-uploaded content give it scale and adaptability beyond what traditional studios can match (25:23).
  • "YouTube has the technology. They have their own cloud, they have the data... My thought for Netflix... is live. I still think if Netflix just went all in on live..." – Howard, 21:15

5. The M&A Theater: Paramount, Ellison, and the Role of Capital

• Paramount’s Situation:
  • Paramount’s move is driven by the need to avoid irrelevance as a “fifth-largest streaming service” (28:18).
  • Much of the bidding war is “trophy hunting”—ego-driven, with little chance of positive ROI (“This is trophy hunting in the media world.” – Howard, 29:45).
  • Influence of state actors and private equity (Qatar, Saudi, Jared Kushner) further complicates the landscape (22:10).

6. Content Discovery, Algorithms, and the Future

• Platforms vs Curation:
  • Platforms using robust data and recommendation algorithms dominate over human curation (45:38–49:05).
  • "I think platforms eat curation for lunch... If you're building Ferrari, that's curation. But if you want to appeal to the average person, you want to build a factory. That's where platforms come into play." – Farhad, 48:14
• Generative AI:
  • The cost of content creation will drop, lowering barriers for new voices and formats—another edge for platforms like YouTube (25:23, 42:37).
• International Content and Discovery:
  • Impact of global hits like "Squid Game" demonstrates value in diverse discovery (39:30).
• The “Attention Challenge”:
  • Even as content supply explodes, platforms must innovate in recommendation ("I don't think we know how to discover stuff yet." – Howard, 45:08).

7. The Personal Angle: Selling Tubi, Founder Reflections

• Fox’s Tubi Acquisition:
  • Farhad shares the emotional and strategic calculus in selling—how critical it is for a founder to care about the buyer’s intentions (52:03).
  • "I was tired, I was beat up. I couldn't raise money. Media companies thought I was crazy... The VCs... couldn't acquire us. But the numbers were growing and, and Fox, to their credit, really let me run it my way..." – Farhad, 50:32
• No Regrets—And Major Growth Post-Sale:
  • Tubi is now likely worth 10–20× the sale price, but Farhad emphasizes satisfaction at seeing it flourish (51:54).

8. Memorable Quotes & Moments

• "The clear winner of the fragmentation of TV consumption is YouTube." – Farhad, 06:55
• "Netflix is run by some of the smartest people in the industry. But I think this is a huge mistake." – Farhad, 09:31
• "You're losing the war to YouTube. That's the war you need to go for…and fight, not traditional media." – Farhad, 18:08
• "I think platforms eat curation for lunch." – Farhad, 45:38
• "I always use the analogy…are you building Ford or Ferrari? If you're building Ferrari, that's curation. But if you want to appeal to the average person, you want to build a factory—platforms." – Farhad, 48:14
• "I loved running Tubi... but I was ready to move on. I was tired, beat up. I couldn't raise money..." – Farhad, 50:32

Timestamps for Key Segments

• Intro & Tubi’s background: 00:00–03:48
• Fragmentation and YouTube’s dominance: 05:50–07:23
• Warner/AT&T/Discovery mergers recap: 09:31–12:31
• Netflix’s strategic predicament: 13:57–16:44
• Paramount vs. Netflix—ego and capital: 27:19–29:45
• Platform vs curation, AI, and discovery challenges: 45:38–49:05
• Personal reflections on Tubi sale: 50:32–52:03
• Humorous closing banter: 54:03–57:28

Final Thoughts

The conversation is a candid, often irreverent deep dive into the hyper-competitive streaming landscape. The hosts warn that Netflix and legacy studios risk fighting the last war—battling in the traditional content trenches—while YouTube surges ahead as the true powerhouse, powered by algorithms, the creator economy, and AI-driven efficiencies. As content creation gets cheaper and audiences more niche, platforms will outpace mere curators. The biggest lesson: in media today, adaptability and scale driven by technology (especially AI) will decide who wins the next decade.

Note:
This summary skips intro/outro, ads, and idle banter, focusing exclusively on the substantive discussion and analysis.