YouTube is reportedly developing a system that would enable users to get content from other streaming services through the YouTube app.
A report by The Wall Street Journal didn’t specify which streaming providers might be available, only that YouTube has been talking to various entertainment companies.
YouTube’s huge global audience is a perfect match for large media companies and possible integration between the two sectors has been an open question for years.
The Information reported on similar murmurings back in 2020, but this latest report suggests that this so-called “channel store” could begin rolling out as early as spring.
This move makes sense for YouTube, which has already made steps in this direction with YouTube TV, which allows users to subscribe to services such as HBO Max from within the app.
It is also unsurprising to see YouTube pitching their reach to other publishers rather than making their own content.
While the company has tried various kinds of premium original content already (such as YouTube Originals) to capitalise on their vast audience presence, these approaches didn’t yield many successful products or series.
The would also be a good for streaming providers like Netflix and Disney+ who currently operate in a highly competitive space.
Despite mergers and acquisitions consolidating the pool of providers, such as Warner Bro.’s merger with Discovery in April, much of the content an individual may want to watch is still spread thinly across multiple platforms - and multiple subscription fees.
Being able to unbundle (or rebundle) content and deliver it specifically to the users that want it, while charging reduced rates could go a long way for big and small streaming services to buoy their flagging subscription numbers.
YouTube is already the internet’s hub for video clips and edits of shows and films. Combined with YouTube’s ability to deliver content to exactly the people who want it and their huge reach, the platform seems to have a compelling value proposition for other streamers.
Large streaming services will have to weigh the value of these possible revenue streams against potentially imploding the entire streaming market in the process.
If publishers give up their competitive advantage of forcing users to subscribe to their whole platform to access the specific content they want, they may be handing YouTube a yoke from which streaming cannot escape.
IOL Tech