YouTube is potentially switching its focus.
The narrative around the video platform is that it is pushing people away. We see the likes of Rumble popping with many theorizing that it will start to really eat into YouTube's market share.
Then we have people such as myself talking about how Web 3.0 is going to make an impact. Over time, this could also nibble away at the leading social media platform.
Finally, we have other Web 2.0 platforms including Facebook, X, and TikTok ALL having video incorporation.
Against this onslaught, how is YouTube going to stand up?
The reality is that it might not. At least not in the content most of us are thinking.
Image by Ideogram
When we think of the streaming wars, names such as Netflix and Disney pop up. These are the ones who are dripping billions into their operations.
Then we have the next level, which are consider the live television platforms. These have a variety of content, including live events such as news and sports.
Do you know who was the largest gainer in this area?
Not only did YouTube TV add 1.9 million subscribers but that was more than ten times the number of subscribers the next three largest live TV streaming services added in 2023. Combined, Hulu + Live TV, Sling TV, and Fubo lost 6,000 subscribers in 2023.
YouTube added as a pace that far exceeded the others.
Here is where things stand:
As of the end of 2023, YouTube TV, Hulu + Live TV, Sling TV, and Fubo had a total of 16,173,000 subscribers. Of that number, 7,900,000 of them were YouTube TV subscribers.
This is on top of the company already having the largest percentage of streaming, with Netflix coming in second.
In other words, Google might be setting its sights on something else. Instead of being exclusively social video, it is entering the realm of traditional broadcasters or ISPs.
It will be interesting to watch what happens with sporting events.
This is one of the three pillars that is keeping traditional cable alive. In spite of this, cord cutting still is at 55%. The numbers are plummeting with huge amounts of money exiting. For example, the Tonight Show when Leno hosted it use to pull in around $350 million per year in advertising. Now, all the late shows pull in around that amount.
While that is not cord cutting it does show how the business model over the last 30 years is changing quickly. Big money is pulling out.
Perhaps the golden goose in this discussion is live sporting events. They still are able to garner large numbers of viewers. When the contracts with the leagues come up, who is going to bid. We have focused upon how Amazon and Apple are already in the game. What happens if Google enters the mix?
We are talking about deep pockets. What would that do for Google's subscriptions? Could they get millions of Sign ups if they have a contract with the NBA, as an example? It is something to ponder.
The barriers are disappearing.
Google might well be taking a different approach to video and media than many other companies. While X and Meta have their focuses, Google might be targeting traditional media as their pathway forward.
Through this approach, they might end up the leading streaming company. They have the resources to dominate.
