YouTube Adds Streaming TV – Millennials Rejoice?
March 01, 2017
Yesterday YouTube announced that it will be adding subscription TV capabilities to its platform, in what has to be considered the biggest blow to traditional TV consumption since ‘Stranger Things’. The new YouTube service will cost a mere $35 per month for approximately 40 channels, which is a clear attempt to woo young consumers who, for some reason, refuse to pay $200 per month for a bunch of channels they’ll probably never watch. Given the extensive reach of the YouTube properties which already boast around 30 million visits per day, the new service is expected to build an immediate and hefty customer base, eating into the market share of other streaming services like Sling TV and Playstation Vue, while also taking market share from cable providers which have recently begun moving towards lower-cost streaming services themselves.
Although there isn’t much information yet about the advertising opportunities on the new YouTube TV, one can assume that some ads will be purchased through the Adwords platform which is leveraged for ads on the Youtube platform currently, and it is also likely that managed services will also be available for networks. What may change, however, is how advertisers approach their video ad strategies, which have recently been shifting to accommodate mobile screens, shorter attention spans, and skippable ad formats. Once YouTube ads are available to purchase for the TV product, will we see a shift to low-cost TV ready spots? Will television ads more closely resemble online video ads of late?
However, the real question is not about ad formats, but what do the tastemakers, aka Millennials, think? Will the low price-point entice them to finally give up their parents’ Netflix logins and come back to live network viewing?
To find out, we went right to the source – a bunch of young people in the Norbella office. We interrupted their incessant snapchatting to ask what they think about the new YouTube service, and here’s what they had to say: