What began as a site for sharing and rating home videos, will soon become an even bigger threat to traditional cable providers. Alexa ranks YouTube as the second most popular website by visitors and YouTube has leveraged this to venture into subscription services for its users such as Red and now, YouTube TV.
Google launched YouTube TV last April in five cities and over the past year, it has grown to include the top hundred populous cities in the United States offered a good spread of TV channels, including live events such as sports in under a year. In fact, YouTube was one of the top contenders for the right to air the Super Bowl and it will soon be hosting both the NBA and MLB. As a result of these changes, subscription will change from $35 to $45 on March 13.
Though currently only in the US, YouTube TV has the potential to become a global phenomena and disrupt television subscription services worldwide because all it takes for users to subscribe is a monthly payment and good internet connection on one of their devices. This means that viewers almost anywhere can have access to YouTube TV and with more users on the site, this means that YouTube can leverage economies of scale to lower pricing and buy even more high quality live programing to become the television provider of choice worldwide.
Facebook has made similar strides with Thursday night football, however, Watch TV content focuses on original programming that is yet to prove itself amongst a loyal fanbase. Additionally, Facebook is exploring partnerships with Cheddar to source news content. However, YouTube is in a stronger position because it provides both original content sourced from users who build their own loyal following and it is also tapping into traditional TV channel programming with their own user base of loyal fans.
Spectrum, AT &T and Xfinity may not be put out of business just yet because their bundled packages allow them to have compete on price but with global scale, YouTube TV may soon be able to make headway on that frontier.
https://www.theverge.com/2018/2/14/17007636/youtube-tv-turner-channels-announced-tnt-tbs-cnn-adult-swim-price-increase
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