YouTube plans to offer a third-party video subscription service so it can prevent its user base from shifting to Amazon and Apple. The company plans to provide users with a wide-ranging streaming subscription service managed by leading companies in the entertainment industry.
This idea, which is currently in YouTube’s evaluation phase, could allow users to subscribe to TV channels and streaming services such as Showtime, HBO, Netflix, CBS All Access via YouTube in the future. Nevertheless, We note that YouTube has declined to comment on this issue at this time.
In the meantime, it is worth reminding that Amazon and Apple already offer users the option to subscribe to different channel and TV portals. subscription options for publishers. Users with any Apple device can purchase subscriptions for different publishers through TV portals.
Let’s say both companies have received a certain commission from this subscription service they offer. Amazon’s $2.6 billion revenue will grow to $3.6 billion in 2020, according to estimates shared by BMO Capital Markets.
Speaking exclusively in the United States, we can say that this service offered by Apple and Amazon has saved users from their perpetual cable contracts and cancellation processes. Likewise, both companies sell subscriptions to different channels, ensuring user growth while increasing the platform’s content diversity.
Apparently, i’m going to have to Google, like other tech giants in Silicon Valley, wants to take a share of this market. Alphabet’s last-quarter revenue fell short of expectations, finishing ninth in 10 quarters. once unable to meet expectations, the company must open its doors to new revenue models.
On the other hand, let’s remind you that YouTube generated $15 billion in revenue in 2019 alone. Moreover, YouTube’s premium subscription service continues to grow. The company has 20 million paid premium subscribers under YouTube Premium and YouTube Music and has 2 million subscribers on the Internet TV service YouTube TV side.
According to Nielsen’s new report, 20 percent of TV viewers in the U.S. have shifted to publishing services with paid subscribers or ad-supported support. 93 percent of viewers want to increase the number of services they receive. That’s one of the main reasons companies like Amazon, Apple and Roku are hosting these services.
At this point, YouTube stands out with 2 million monthly active users who spend millions of hours watching video content. Given that 500 hours of video is uploaded to YouTube per minute, we can say that the platform can exceed expectations for revenue with a new subscription system.