YouTube wants to compete with television with a free offer
YouTube has every intention of keeping your favors, and relies on an age-old formula to do so.
After having relegated the channels of the small screen to the rank of antiquity, YouTube ends up copying their model. With its strategy, which consists of entrusting its users with the task of entertaining others, the platform has quickly established itself as a must-have on the web. The development of secondary activities, YouTube Music to name but one, enabled it to withstand the arrival of SVOD offers such as netflix and consorts. Last October, the Alphabet subsidiary became the most used streaming platform in the world. It now represents 36.9% of the video market share according to Nielsen.
But the company does not intend to rest on its laurels, and continues to explore avenues to outrun its competitors. At a time when GAFAMs are vying for consumer attention, Youtube working on a new formula inspired by television. According to the Wall Street Journal, YouTube aims to offer a vast library of series and productions to its users, at no additional cost. A bit like Pluto TV, the offer would be based on two distribution models: video on demand and linear.
Users will thus be able to watch episodes as they would on television, at a specific time, or catch up with them later via what could thus be akin to replay. This is quite the model of Pluto TV or Roku, which rely on advertising to fully finance their activities. While more traditional platforms are beginning to diversify their revenue streams through advertising, allowing them to offer low-cost subscriptions, YouTube doesn’t want its users to dip their toes. A company spokesperson explained:
“We are always looking for new ways to provide our viewers with a central destination for all their entertainment. A place where they can watch and share content with the people who matter most to them.”
Netflix is on the decline and piracy is making a comeback. For several months, the bursting of the SVOD offer has been pointed out by many analysts. All the studios want to develop their own streaming platform, at the risk of favoring the illegal offer. For YouTube, centralizing all these points of interest is therefore a golden opportunity to become the favorite destination of many fans of small screen productions. It is still necessary to forge the right partnerships.
Difficult to know for the moment on which catalogs YouTube intends to rely. We know, however, that it has already called on Warner Bros, Disney, Paramount Pictures and even Lionsgate to add iconic films to its VOD library. In France, the platform offers for example to rent or buy some of its footage.
It had already made this change of strategy by offering several series and films for free in exchange for a few advertising pages. American users were thus able to discover A Blonde’s Revenge free. In France, no such campaign has yet been launched. YouTube will probably want to look at results in the United States first before exporting it outside its borders. In any case, YouTube is setting out to conquer a new market.