Alphabet YouTube Red can disrupt the market share of Netflix and Amazon.
There is a new core player in the premium digital content that has proprietary content. Ironically, this new platform has the potential to damage the business model of Amazon and Netflix Inc. Alphabet’s YouTube Red, which is an ad free platform that was rolled in October, will start rolling out content that will belong to some of the industry giants on February 10, 2016.
Rooster Teeth, Lilly Singh and Awesomeness TV are all set to come up with their feature length films. Among that, the top entry will be a series starring gaming celebrity PewDiePie.
It might not be similar to the original content that is generally found on Amazon and Netflix but it is important to dig deeper into the matter and scratch out the factors that are hidden underneath. Alphabet came up with YouTube Red almost four months ago when the company’s most subscribers were sick of the abundant video ads bothering them.
The price point, which is decided to be $9.99, turns out to be a pro-rated annum for Amazon Prime. This is on par with what the Netflix subscribers actually have to pay to enjoy the streaming service. Alphabet takes a step ahead by coming up with a music streaming platform, known as YouTube Music, which is offered free of cost. Moreover, videos can also be downloaded to watch in offline mode later.
The urge to come up with original content is a process that was relatively slow at most digital content providers, such as Netflix and Amazon. However, this changed at a fast pace since the masses were interested in sound investment which is what the YouTube Red offers.
Many consumers might find it odd to lay emphasis on TV shows and feature films since YouTube users have a legacy of watching short videos with no strings attached. The trend of smart TVs is becoming quite popular and the platform is being used on big screens instead of monitors, which creates the demand for TV series and feature films. Netflix has already set a path to follow for YouTube Red.
YouTube Red will take some time to gain success but the fact that will push the platform amongst the masses will be the stars endorsing the platform to their gazillion fans and subscribers. This will certainly ramp up the game and the quality of the content will actually not matter in such a case.
Amazon and Netflix have been successful in growing with the competition that is prominent in the industry. So, in most cases, there are no chances of Alphabet to make a change. In the times to come, the consumers will be inclined to subscribe to more than one service. This is the point where it might get critical so the company wants to ensure the opportunity is good enough to make a difference in the industry.