The world of entertainment is fascinating especially with Big Tech involved.
Over the last year, we covered how Amazon made inroads into the industry. The purchase of MGM a couple years ago gave it one of the most iconic film libraries in Hollywood.
There were also times of speculating about Elon Musk and how he is going to incorporate different services into X. While he hasn't mentioned broadcast specifically, the fact that he is so involved with telecommunications with SpaceX shows he is not far from the epicenter of what is taking place.
Then we have Google. The success of YouTube is well known. However, its television service is also finding success.
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The 4th Largest Television Provider In The US
Google is nOW the 4th largest television provider in the US. The YouTube platform, especially the digital television service keeps growing.
YouTube TV has solidified its position as a major player in the live TV streaming market, securing its spot as the 4th largest provider in the United States, trailing only industry giants Spectrum, Comcast, and DIRECTV.
That is some pretty healthy company. It is starting to move into the class of the major cable and satellite providers. Many are finding Google to be a solution when the cut the cord.
YouTube TV’s subscriber base is NOW estimated to be over 8 million strong, solidifying its impressive growth trajectory. The platform’s success is largely attributed to its appeal among sports enthusiasts, especially NFL fans.
The appeal causes some seasonality issues, with the numbers dipping in the first and second quarters as the NFL season ends. However, it is still a viable alternative to what the traditional carriers are offering.
Last year’s addition of the NFL Sunday Ticket, granting access to out-of-market NFL games, proved to be a game-changer, attracting a reported one million new subscribers in the third quarter of 2023 alone—at a time when most TV services are losing subscribers.
If Google continues to eat market share, this could be a serious issue for the other companies.
Starlink Grabbing Internet Custoners
One area where the other companies excel is they are also internet providers. This is a huge revenue center, helping to offset the pain of losing cable customers.
This is also starting to come under fire.
One company that could cause some damage is Starlink. With satellite Internet, they have the ability to provide service anywhere in the world. coverage is limited but getting better as more satellites are put into use.
Then we have the mobile carriers. They are pushing their home 5G service. This is something that, due to the price increases, could have appeal to many users. If the mobile operators are able to grab a bit more market share, it could be a double whammy for these carriers.
Couple that with the cord cutting which is taking place due to the cancelling of cable subscriptions, we can see how this could turn sour for these companies in a short period of time.
That said, Google isn't without its problems. It is facing a second anti-trust case, after losing the first one. We are also seeing regulatory issue arising within the EU.
This is one of the most interesting period of disruption I can recall. It is happening right before our eyes and playing out in real time.