YouTube to join the streaming services fray

Alphabet’s video platform YouTube is trying to set up a release of an online store for streaming video services and has engaged in talks with entertainment companies about participating in the platform, according to a report by the Wall Street Journal.

According to some sources, the company expects the new platform, which it identifies internally as a “channel store”, which has been in the works for at least 18 months and will be accessible as early as this fall.

With this YouTube will be in the ranks of Amazon, Apple, Roku etc, who have their own platforms to sell streaming video services. By providing their own apps these companies are attempting to establish themselves as the go-to destination for people seeking access to all of their favourite movies and shows. Selling several services through a single app can make users’ lives easier.

Currently, YouTube provides its subscribers with YouTube TV which gives a $64.99-a-month online package of cable channels. To add on a subscription to services such as HBO Max. users will be able to choose streaming services a la carte via the main YouTube app in the new marketplace.

Competition is very stiff in the streaming industry and every bit of reach helps. YouTube Store would help in that reach as it will offer another avenue to potential customers. The company is in talks with the streaming partner when it comes to the topic of splitting subscription revenue.

Other companies like NBCUniversal’s Peacock have had discussions with potential partners about adding their streaming services to its app. Netflix Inc. and other streaming providers have agreed to participate in Verizon’s new Plus Play subscription manager, which allows consumers to sign up for and manage their streaming services through Verizon’s interface.

The main goal for these streaming services hubs is to get into as many places as they can according to Bill Rouhana, chief executive of Chicken Soup for the Soul Entertainment Inc. however, that kind of partnership does have some downsides like less control over customer data and less revenue. Still, it is better to be present and available in multiple places as it makes for a better experience for the user and the cancellation of the subscription is way low.

Streaming providers are looking into ways to bundle their own services in addition to making their services available in stores like Amazon and YouTube. Disney bundles its Disney+, Hulu, and ESPN+ services for a lesser price than users would pay for each alone. According to several industry analysts, such arrangements often help retain consumers for a longer period of time.