Here's How YouTube Is Intensifying The Battle Against Netflix And Amazon
- Alphabet Inc (NASDAQ: GOOG)'s YouTube is aggressively attempting to infringe in Netflix, Inc. (NASDAQ: NFLX) and Amazon.com, Inc. (NASDAQ: AMZN)'s Prime Video.
- YouTube executives are reportedly in talks with Hollywood studios to obtain the streaming rights for programming on its $9.99 a month premium subscription, YouTube Red.
- YouTube's senior executives include MTV's ex-programming chief and a Netflix content executive.
Netflix's stock has been a favorite of investors throughout 2015 as the issue returned more than 160 percent since January. While the company's financials may have disappointed investors in some of its its quarterly reports, Wall Street found sufficient encouragement in its growth and outlook.
Netflix's stock shrugged off Amazon's investments in its Prime Video library throughout 2015. The question is: can Netflix also shrug off a push from Alphabet's YouTube?
Related Link: Citi Reveals Strong YouTube Growth Numbers
The Wall Street Journal, citing "people familiar with the situation," reported that YouTube executives recently met with Hollywood studios and other production house in an attempt to win streaming rights for their content. YouTube recently launched a $9.99 a month subscription service called YouTube Red and the company is looking for compelling content to entice users to join.
YouTube's senior management team appears to have the necessary experience to become a formidable player in the space. Susanne Daniels, MTV's former programming chief recently joined YouTube while Kelly Merryman, a former Netflix content executive joined YouTube in late 2014. Both executives report to Robert Kyncl, YouTube's Chief Business Officer who served as Netflix's Vice President of Content Acquisitions.
WSJ added that YouTube is focused on acquiring new material, rather than streaming older movies and TV series that have already been broadcasted elsewhere. While the company is still in the early stages of its game plan, it is looking to offer its subscriber a "robust" collection of original and licensed programming in 2016.
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