YouTube could offer video streaming subscriptions by the end of the year
YouTube has been working on a new streaming strategy codenamed the “channel store.” According to sources, the “channel store” will be an online store for streaming services. The firm has been working on the project for at least 18 months and has contacted entertainment companies to gauge interest in participation. If everything goes to plan, the new store could launch sometime this fall.
Currently, YouTube has its Premium service and also YouTube TV. The latter offers users access to live TV channels and the ability to record shows. It also offers the ability to add on services like HBO Max, Starz, Epix, and more. How the new service would differ from YouTube TV’s current offering is that YouTube users would be able to purchase and watch services directly through the YouTube app. Naturally, this would involve revenue sharing amongst companies, but it could be a good move to gain more subscribers even though it means giving a small percentage to YouTube. While this might be a weird option for larger established services, it makes sense considering that YouTube has a massive user base, with over two billion monthly logged-in users.
Another added benefit is that YouTube could push ads, trailers, and free movies to users, and if they want to subscribe, they can pay for the service through YouTube. This strategy is nothing new, with many companies offering their services on other platforms. But the partnership can be hit or miss. For example, HBO Max made its service available on Amazon Prime. HBO Max decided to pull its service, even if it meant losing nearly five million subscribers. Despite disagreements, partnerships can be powerful.
While bundling through a competing service is one way, some companies have also started to bundle their own services. Disney is a prime example, offering Disney Plus, ESPN Plus, and Hulu as a bundle. The company recently announced plans to raise prices
starting in August. Disney will also release a new ad-supported tier later this year. HBO Max and Discovery Plus announced plans to combine and form a new streaming service
, which will debut next year. These kinds of joint services help to keep customers longer and make it less likely that they will leave. If YouTube can pull this off, it will become the ultimate hub for entertainment.
Source: The Wall Street Journal