YouTube is working on a new streaming strategy codenamed “Channel Store”. According to sources, Channel Store will be an online store for streaming services. The company has been on the project for at least 18 months and has contacted entertainment companies to gauge interest in participating. If all goes as planned, the new store may launch sometime this fall.
Currently, YouTube has its own premium service as well as YouTube TV. The latter gives users access to live TV channels and the ability to record shows. It also offers the ability to add services like HBO Max, Starz, Epix, and more. How the new service differs from the current YouTube TV offering is that YouTube users will be able to purchase and watch the services directly through the YouTube app. Of course, this may involve revenue sharing between companies, but it may be a good move to gain more subscribers even though it means giving a small percentage to YouTube. While this may be an odd choice for larger existing services, it makes sense to consider that YouTube has a huge user base, with over two billion monthly logged in users.
Another plus is that YouTube can pay users free ads, trailers, and movies, and if they want to subscribe, they can pay for the service through YouTube billing. This strategy is not new, with many companies offering their services on other platforms. But this does not always work as planned. For example, HBO Max has made its service available on Amazon Prime. HBO Max has decided to pull its service, even if it means losing nearly five million subscribers. The company had to recover these lost customers and provide incentives to mitigate the loss of subscribers. Despite the differences, partnerships can be powerful.
source: The Wall Street Journal
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