YouTube exploring streaming of TV and films in challenge to Netflix and Amazon
YouTube is reportedly seeking to take on the likes of Netflix and Amazon in the fast growing TV and film streaming space.
Executives from YouTube parent company Alphabet, created in a shake-up of Google’s structure earlier this year, have recently met with representatives from studios and production companies, the Wall Street Journal reported, citing sources.
The meetings have involved discussions relating to pitches and licenses for new content, the newspaper said, adding that the process was in its “early stages”.
It is thought the addition of premium videos could bolster membership of Red, the $9.99-a-month subscription service launched in October that offers ad-free viewing and music streaming.
YouTube’s revenue currently comes from the ads its hosts on its site, which is free to access.
On top of offering programmes it has licensed, both Netflix and Amazon have been investing heavily in original programming to lure more subscribers.
Amazon has hired former Top Gear presenters Jeremy Clarkson, Richard Hammond and James May for a new motoring show, while Netflix makes Orange is the New Black and House of Cards.
YouTube, which remains the world’s largest online video service in terms of viewers according to the WSJ, is believed to be focusing on licensing.
The video on demand market was valued at $25.30 billion (£16.9 billion) in 2014, according to data from research firm MarketsandMarkets.
That figure is set to rise to $61.40 billion in 2019.
