Google's YouTube to Launch $35-a-Month Web-TV Service
February 28 2017 - 4:54PM
Dow Jones News
By Jack Nicas and Shalini Ramachandran
Google's YouTube on Tuesday unveiled a web-TV service that will
offer a package of over 40 broadcast and cable channels for $35 a
month, making the tech giant the latest entrant in a race to win
over millions of consumers who are shifting away from traditional
TV.
The new service, dubbed YouTube TV, is set to launch in the next
few months. It will have all the major broadcasters, including ABC,
CBS, NBC and Fox, as well as several dozen well-known cable
channels, such as ESPN, FX, USA, MSNBC and Fox News.
Google, which is owned by Alphabet Inc., joins a crowded field
of companies selling "skinny bundles" of TV channels over the web.
They're targeting the rising numbers of "cord cutters," people who
cancel their pay-TV connections, as well as "cord nevers," young
people who have never paid for traditional TV. Pay-TV executives
say there is a market of at least 10 million homes that only
subscribe to broadband and not TV.
"There's no question millennials love great TV content," said
YouTube Chief Executive Susan Wojcicki. "But what we've seen is
they don't want to watch it in the traditional setting."
Other companies offering cable-style online-TV services include
traditional operators like Dish Network Corp.'s Sling TV and
AT&T's DirecTV Now, as well as new entrants like Sony Corp.'s
PlayStation Vue and Hulu, which plans to launch a streaming skinny
TV bundle soon for under $40 a month. Amazon.com Inc. has also been
discussing plans for its own bundle with media companies.
So far, none of the existing web-TV offerings have been runaway
successes, with some, such as DirecTV Now, facing technical hiccups
and other issues early on. Analysts estimate that Sling TV, which
launched first, has about 1.2 million subscribers today. A big
issue for all companies launching skinny bundles is to secure
rights to enough major TV channels while keeping the price in
check.
Write to Jack Nicas at jack.nicas@wsj.com and Shalini
Ramachandran at shalini.ramachandran@wsj.com
(END) Dow Jones Newswires
February 28, 2017 16:39 ET (21:39 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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