Netflix (NFLX) and Amazon (AMZN) Watch Out! Google's (GOOG) Coming...
Tweet
Share
E-mail
Get Alerts GOOG Hot Sheet
Join SI Premium – FREE
Reports today have Google (Nasdaq: GOOG) aiming to make their YouTube division more competitive with the likes of Netflix (Nasdaq: NFLX) and Amazon (Nasdaq: AMZN) in the subscription streaming video market.
The U.S. won't be the first to get the service, Google will try it out in the U.K. and other place in Europe before hand, but they have been in talks with Hollywood studios for months, according to the NY Post.
Sources say that Google has earmarked about $100 million to strike content deals with studios and other premium content providers. Some say that the Mountain View, CA-based search giant will have a tough time striking deals until it cracks down on fighting piracy.
Numbers for YouTube are traditionally quiet, but the division generally only makes money by selling advertising. A new subscription service may boost profits multiple times over, according to several sources. Google is also more likely to share revs with content providers in order to get more top-shelf content.
The media could be as diverse as celebrity channels and live sports broadcasts. Google has been said to be in talks with the NBA already, and offering celebrities multi-million deals to broadcast original content on their own channels.
The U.S. won't be the first to get the service, Google will try it out in the U.K. and other place in Europe before hand, but they have been in talks with Hollywood studios for months, according to the NY Post.
Sources say that Google has earmarked about $100 million to strike content deals with studios and other premium content providers. Some say that the Mountain View, CA-based search giant will have a tough time striking deals until it cracks down on fighting piracy.
Numbers for YouTube are traditionally quiet, but the division generally only makes money by selling advertising. A new subscription service may boost profits multiple times over, according to several sources. Google is also more likely to share revs with content providers in order to get more top-shelf content.
The media could be as diverse as celebrity channels and live sports broadcasts. Google has been said to be in talks with the NBA already, and offering celebrities multi-million deals to broadcast original content on their own channels.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Verizon planning new round of layoffs this week - Barron’s
- 4 internet stocks to consider into Q2 earnings: Wolfe
- Susquehanna Starts IBM (IBM) at Neutral
Create E-mail Alert Related Categories
Insiders' BlogSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
