Netflix is in trouble because its business model costs far more than YouTube's, and that's bad news for the company and its workers.

• Netflix stock has gone flat and the company is reportedly planning big layoffs.
• Netflix pays huge upfront costs for content, millions for documentaries and shows, before knowing if anyone will watch.
• YouTube pays nothing upfront, creators like Mr. Beast make the content and build the audience themselves, and YouTube only pays out after ads sell.
• This means YouTube takes on far less financial risk than Netflix while competing for the same viewers' attention.

Outlook: Netflix will likely keep cutting costs and staff as it struggles to compete with YouTube's cheaper, creator-funded content model.