YouTube is preparing a paid TV service in 2017

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YouTube is ready for the future i

It was about time for YouTube to enter the field of TV service. The streaming platform is very close to establish a huge deal with broadcast TV and cable channels to launch in 2017, according to Bloomberg News.

The new service, which will be called Unplugged, will feature major TV channels including Comcast Corp.’s NBCUniversal, Viacom Inc., Twenty-First Century Fox Inc. and CBS Corp. All these information were gathered by Bloomberg. The people responsible for the intel are inside sources, who wanted to stay anonymous because the negotiations are private and nothing is finallized.

YouTube wants to offer premium content to its viewers in order to support the biggest ad-supported video platform in the world. One of the sources said that YouTube has been working on an online cable bundle for the past four years. But, these plans are more active the last few months. Maybe the fact that many online paid TV services have seen their profits skyrocket was the reason.

Sundar Pichai, Google’s chief executive officer, wrote in an letter to Alphabet shareholders last week:

“We aim to provide more choice to YouTube fans — more ways for them to engage with creators and each other, and more ways for them to get great content.” “We’ve started down this journey with specialized apps like YouTube Kids, as well as through our YouTube Red subscription service.”

Also the report underlines some of the ways that Unplugged could be formed. For expample it would offer a bundle of channels with the four U.S. broadcast networks and some popular cable channels. This is known as a skinny bundle. There is the scenario of a collection of less-watched channels and creating small groups pf channels with themes. For instance a comedy bundle would include a handful of TV channels. This bundle could work with many themes. This move might bring new viewers to the not-so-popular channels and offers more opportunities for the channels. Let’s not forget that many channels are depending on the profits of the TV shows. More viewers equals more profit.

CBS Chief Executive Officer Leslie Moonves stated at the company’s investor day:

“There is a strong consumer demand for the skinny bundle of 15 channels to 30 channels. Many viewers would rather pay for only those channels they actually watch. ”

That sound logical. Nowadays consumers want to pay money for what they actually use!

But how much will it cost to watch TV from YouTube? The report says that the new service could cost less than $35 per month, which is a fair price if they will include everything they say. But, we will have to wait until the beginning of 2017 to see what Unplugged is all about.

 

Image source: TechoBuffalo

 


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Author: Martha Papadimitriou

Martha is a journalist, a blog writer, a mother and a bookworm. She studied Journalism and Communication and graduated in 2002. She has a restless spirit and loves to learn new things. Martha also wants to make the world a better place, and when she is not working she enjoys reading and cooking.

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