The articles linked below discuss YouTube's recent announcement of its upcoming live and on-demand streaming TV subscription service called "YouTubeTV."
http://www.cnbc.com/2017/02/28/youtube-announces-skinny-tv-bundle-.html
http://fortune.com/2017/02/28/youtube-1-billion-hours-television/
http://www.usatoday.com/story/tech/talkingtech/2017/03/01/youtubes-cord-cutting-bundle-really-skinny/98566738/
Subscribers will have access to content from over 40 different networks, as well as YouTube-original content from YouTube Red. Networks include the major broadcast nets (ABC, CBS, FOX, NBC), as well as cable networks including USA, FX, Freeform, ESPN, FOX Sports, and NBC Sports. The service, which will cost $35 per month (for a family plan of up to 6 accounts), is expected to launch in the next few months in the US.
YouTube CEO Susan Wojcicki commented on the upcoming service, stating "There's no question that millennials love great TV content, but what we've seen is they don't want to watch it in the traditional setting."
One article notes that the service has emerged price-wise as a sort of middle ground between paying for a cable subscription (at $100+ per month), and paying for subscription video-on-demand (SVOD) players (such as Netflix or Hulu, for about $10-15 per month).
Because I work in the television ad sales industry at ABC, this topic immediately interested me. The industry is constantly discussing how new streaming services and content-on-demand providers are emerging to give viewers more options of what, when, and how to watch. These services are particularly used by millennials -- a highly desirable group to advertisers.
SVOD services are often considered "frenemies" to content providers such as ABC. ABC, like other broadcast and cable networks, has struck deals with these services to license library content (i.e. Netflix) or stream ad-supported full episodes post-airing (i.e. Hulu). However, it does still provide users other platforms to view ABC's content besides our own players.
I will be interested to see if YouTubeTV, and similar services that may arise in its wake, begins more conversations about cord cutters and cord-nevers. Will this become a new, desirable option for those consumers who do not wish to pay for a full cable subscription?
I will also be interested to see how the ad industry responds. According to the article, shows on YouTubeTV will still include advertising. At this point many networks still receive the majority of the revenue for ads that play during their programs on SVOD services. However, with this new service YouTube will likely eventually aim to increase their own profitability. I am interested to see if and how YouTubeTV will challenge the existing ad revenue model.
Thank you for sharing this! I find it really interesting how publishers and social media platforms are taking such a keen interest in long-form and/or TV content. In an industry that's been stagnant for so long, I find it refreshing that media companies are finally starting to innovate by reimagining the ways that we consume video content.
ReplyDeleteAs an avid YouTube fan, I'm really excited for this because I've tried Netflix, Hulu, HBO and Amazon Prime, but haven't been completely satisfied with either of them. I like the idea of merging online content with traditional TV because as a millennial, we definitely like the variety and choice. As a content creator, I'm excited to see how the TV and online video world will merge because I definitely have plans to create in that field, and I think it will open up a whole new world of creativity as far as content creation is concerned.