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Can YouTube Red Compete With Netflix And Amazon?

by
February 5, 2016 8:43 am
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Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL)’s YouTube was arguably the catalyst that led to the public’s shift toward online TV subscription services.

While the video platform became famous for its billions of short clips and ability to create online celebrities with little more than an Internet connection and a computer, Google is hoping to grow the service into something more now that online viewing has taken off.

YouTube Red

Google’s premium video service YouTube Red appears to be the company’s effort to encroach on the growing market share of streaming services, like Netflix, Inc. (NASDAQ: NFLX) and Amazon.com, Inc. (NASDAQ: AMZN). As far as price, YouTube’s $9.99 monthly fee is in direct competition with Netflix’s offering. Amazon, on the other hand, offers a cheaper rate for Prime users who pay upfront.

Related Link: Here’s How Much Netflix Dominates Apple, Facebook, Amazon And YouTube In Internet Traffic

Content

When it comes to streaming subscriptions, content is king. One of the reasons Netflix has been so successful in the online streaming space has been the company’s efforts to curate the most comprehensive content library.

That means paying hefty prices to acquire licensing as well as investing in its own original series. Amazon isn’t far behind, with an extensive library of existing shows and movies and some of its own content as well. For YouTube Red, a relatively new entrant, content is a bit more uncertain.

A Built-In Audience

One major positive that YouTube Red has going for itself is its music library. The firm allows premium subscribers unlimited access to a huge library of music, something Netflix doesn’t offer.

However, for viewing options, things are a bit hazier. YouTube Red subscribers can watch the content they love from their favorite YouTubers ad-free, and now the company is rolling out premium content that will only be available to Red subscribers.

YouTube’s new content will have an interesting angle, because it will feature the site’s already popular creators in longer, high definition videos. Many YouTubers garner billions of views on each video, so there is already a huge built-in fan base for YouTube Red.

At the moment, it remains unclear whether YouTube’s humble beginnings as a host platform for a variety of short clips will translate into a streaming subscription success, but hype surrounding the new content offerings suggests the outlook is good.

Image Credit: Public Domain


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