YouTube Challenges Apple and Amazon With Third-Party Video Subscription Service
Apparently YouTube has been reported to be looking over the idea of offering third-party subscriptions to users that will take attention away from Amazon and Apple.
This subscription offer is based around giving the customers the ability to sign up for a “wide range of subscription-stream.ing services run by entertainment companies,” according to The Information.
Essentially this could mean that YouTube would be allowing people to purchase subscriptions to services from networks like Showtime, HBO, Netflix, CBS All Access and others if the deal goes forward. However, it should be mentioned that YouTube has declined to comment on the report when asked by The Verge.
Amazon and Apple are two of the biggest collectors streaming services and givers to the customers using their products along with other companies that offer the same subscriptions. For example, Amazon Prime subscribers and Apple hardware users can purchase subscriptions through their respective Amazon’s Channels programs or Apple TV portals.
BMO Capital Markets projected that Amazon “would make $2.6 billion from its channels product in 2019, growing to $3.6 billion in 2020,” according to The Information.
As Amazon and Apple take a portion of revenue from every sign-up their variety of services receive. By offering separate versions of the traditional TV bundle that people are trying to escape and giving their customers a way to pay for subscriptions without having to deal with cable contacts and cancelation fees, Amazon and Apple can control a growing portion of their growing customer base.
It is good business for Google to become more interested in as its subscription service on YouTube grows in general. YouTube has 20 million paid premium subscribers (a combination of YouTube Premium and YouTube Music), and 2 million subscribers on its internet TV service, YouTube TV, Sundar Pichai, Google’s CEO told investors.
More than 1 million subscribers on YouTube TV in less than a year, that’s a notable growth for YouTube and Google. However, there is an issue with this plan as there is no minimum guarantee that this will be able to be executed as consumers already have easy access to Amazon Channels and are already using Apple products. As well as the high programming gees make the minimum guarantee even harder to achieve; on the other hand, YouTube has the advantage of being able to lean on advertising revenue and Google’s larger revenue to offset costs and possible losses.
The goal is to eventually turn a profit and that aspect boils down to what services YouTube creates partnerships with. This is where efficiency and simplicity come into play, as Amazon and apple are already hubs for people’s day-to-day content.
Now if Google’s YouTube can become a home for all TV viewing, the same way Apple and Amazon are, is yet to be seen. However, Google isn’t one to back down from trying.
What are your thoughts? Let us know in the comments below.
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