We've seen the calls for Netflix to lose its market share due to competition for many quarters. The competition from companies such as Verizon is anemic as the firm's Go90 app aimed to attract teens has yet to be successful. Netflix's customer loyalty has been under-appreciated by analysts which is why its stock has been able to have triple digit gains this year. The first and only major corporation which has the potential to take some share away from Netflix is Alphabet's YouTube Red product. YouTube Red has a different, but equally impressive level of customer loyalty. In order for YouTube Red to be successful, its content creators need to improve and its exclusively produced content needs to be excellent. I have been watching YouTube for many years. The quality has improved every year. This is because there is a high amount amount of young people who want to make a YouTube channel. The incentive structure is properly aligned as YouTubers are paid more as they get bigger. YouTube's top creators use the website to make a full-time living, so the produced content for only subscribers should be of high quality. One cautionary note is that this growth from YouTube Red will not come overnight. I have recently talked to a YouTuber with over 500,000 subscribers. He said his earnings from YouTube Red are still small compared to his earnings from ads. This makes sense as viewers are not accustomed to paying for YouTube. If YouTube increases the amount of ads and has great quality exclusive content, it can encourage users to purchase the $10 subscription. As millennials avoid linear TV, they will have more disposable income to spend on entertainment as they get older. This money will go to YouTube.