According to a new report from The Information, the company is in talks to offer third-party subscriptions through YouTube to services from networks such as Showtime, HBO, Netflix and CBS All Access.
Third-party channels are an integral part of both Apple and Amazon’s TV business, with BMO Capital Markets projecting that Amazon “would make $2.6 billion from its channels product in 2019, growing to $3.6 billion in 2020.” Amazon currently offers access to more than 200 channels through Fire TV. Both Apple and Amazon receive between 30-50% of the subscription fees.
Such a move would be considered a positive way for YouTube to maintain and improve its market share of viewing time which, in the US, sits at approximately 21% of all streaming according to Nielsen.
However, one potential pitfall for YouTube is that this offer could confuse its product.
YouTube already offers a cord-cutting streamer in the US – YouTube TV – which serves as a competitor to the likes of Hulu Plus Live TV and the now defunct PlayStation Vue. It starts at US$50 a month for a range of channels and currently has more than 2 million subscribers.
The report from The Information is unsure about whether YouTube’s channels would be tied into its YouTube TV product or if it would be separate.
German smart TV sales up 14% says @gfk digitaltveurope.com/2020/10/23/ger…
23 October 2020 @ 09:29:38 UTC