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Report: YouTube Looking to Venture Into Video Subscriptions

Stephanie Sengwe

YouTube seems to be on a mission to diversify its platform. According to a report by The Information, the company is looking at venturing into the video subscriptions market. Like Amazon and Apple, YouTube wants to give people the option to sign up for premium subscription services, such as HBO, Sundance and Cinemax, through their platform.

Though the service already allows people to sign up for a small amount of services, including Showtime and Starz, through its YouTube TV streaming cable service, their recent endeavors imply they want to significantly increase the number of outside services available, The Information reports.

“It is unclear if any new subscription offering would be tied to YouTubeTV or would be separate. But giving YouTube TV subscribers access to various other stand-alone subscriptions could help YouTube improve the profit margins on the streaming cable service,” The Information stated. While offering cable channels online tends to not be highly profitable, Amazon and Apple have proven to be the exception, earning anywhere between 30 percent to 50 percent of the subscription fee.

The news comes as the YouTube TV is showing signs of significant growth. Just last week, Google and Alphabet CEO Sundar Pichai shared that YouTube TV has surpassed two million subscribers. The service is now the third largest Live TV Streaming Service.

YouTube TV has been actively trying to recruit PlayStation Vue customers leaving the services due to its January shutdown. The company reportedly reached a marketing agreement to promote the service to Vue subscribers, as well as for permission to release a PS4 app.

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