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Prep for YouTube’s Pay-TV

YouTube claims 10 times the number of users as Netflix or Facebook video. Netflix has been touted as a traditional TV network killer. Now, YouTube is entering the fray in a serious way—it’s own pay-TV streaming service.

Network partners

YouTube streams more than a billion hours of video each day. With that sort of reach, it’s no wonder parent company Google is always looking at ways to monetise. YouTube Red   

Now, it’s partnered with more than 40 providers to start providing a pay-TV service that looks set to rival the established players. ESPN, Showtime, ABC, NBC, Disney, USA, FX, Fox and National Geographic are on-board.

High-profile hold-outs include HBO, MTV, CNN and Comedy Central.

Network competitors

While Netflix might be the most obvious competitor to YouTube TV, there are in fact many players in the streaming pay-TV marketplace. Beyond that, however, it seems likely that the Google-owned video giant is also looking to up its competition with more traditional media.

Edging in on the $70 Billion US TV ad market is a clear motivation for the move. If it can claim a fraction of that budget, YouTube TV will be heading for a win. Diverting a greater chunk of traditional budgets to online promotions could be a strategic gain for the web in general as well as for Google.

It is as yet unknown exactly how ads will run through the services, or how advertisers will buy time. When those details are announced, marketers around the world will immediately be assessing their budgets.

Roll-out

As is often the way with Google, there are no firm details about how and when YouTube TV will launch. It seems likely it’ll get going sooner rather than later.

Early reports indicate that the service will start at US$35 per month. Many expect it to be streaming in the USA in the next couple of months, with a global roll-out to follow shortly thereafter.

Expect it in Australasia shortly after initial American wrinkles are ironed flat.

Copy Transmission is a Melbourne-based agency :: Better Brands. Loud & Clear.

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