Friday, 07 April 2017 12:08

Google's (GOOGL) YouTube TV Streams Horror for Competitors


It made too much sense to not have existed already. But the waiting game is over — YouTube TV is finally here. Television, as we've always known it, will cease to exist.

On Wednesday Alphabet (GOOGL) subsidiary Google's new television experience launched in major metro markets such as New York, Los Angeles, San Francisco, offering cord-cutters a bundle of live programming at $35 per month. And more cities will soon become eligible. What does this mean? The rate of cord-cutting, referring to cable/satellite subscribers who cancelling their bloated TV services in favor of “skinny bundles,” is about to accelerate.

YouTube’s package consists of more than 50 channels, including major sports networks such as Disney’s (DIS) ESPN, Fox Sports from FOX (FOX), along with and Comcast’s (CMCSA) SportsNet. Combined with a host of premium broadcast channels such as Disney Channel, Bravo, MSNBC, and Fox News, YouTube TV carries a big punch.


Notably, the service — at $35/month — falls in line with offerings from AT&T's (T) DirecTV Now and Sling TV from Dish Network (DISH). When considering the recent arrival of PlayStation Vue from Sony (SNE) and Hulu, which plans to launch its own skinny offering later this year, the competition will be intense. And this doesn’t even include Apple (AAPL), which is often regarded as the next major TV entrant.

Where YouTube TV may stand out, however, is the fact that it offers a cloud DVR, which Google says offers unlimited storage. The service, which allows six accounts per household — higher than Netflix (NFLX) — not only features customized DVR storage, but also allows for three simultaneous streams per household. Another distinct advantage could be with YouTube’s channel offerings, which includes CBS (CBS) — the top-rated network on television. CBS is not available on either DirecTV Now or Sling TV.

Likewise, YouTube TV will soon offer AMC networks (AMCX) — home to top-rated shows such as The Walking Dead and Better Call Saul. For consumers who insists on having more choices without being held ransom to bloated channels they pay for (but don't watch), YouTube TV could be a viable option. And for those who crave technology with their TV-watching experience, Google’s massive cloud storage feature and the ability to stream shows across multiple devices will be tough to match, especially with Android dominating the smartphone OS market with a 90% share.

Meanwhile, the likes of Charter Communications (CHTR), which recently merged with Time Warner and other cable/satellite TV providers such as Comcast, Dish Network and DirecTV should be terrified. With YouTube already boasting more than 1 billion users worldwide, which amounts to about one-third of all internet users, it was already a force to be reckoned with. And YouTube TV is just the horror scenario they expected, but can’t turn off.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Source : nasdaq.com

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