According to the story, which cited sources familiar with the recent discussions, the company has resumed the ongoing discussions with other renowned entertainment companies about the potential participation from these companies in the platform, which it is being internally referred to as a “channel store.”
The platform has been in development for the last 18 months and if the sources are to be believed the platform could be ready this fall. Given that YouTube TV already has these features and functions for HBO, AMC+, Showtime, and many other channels, that is an unexpectedly long development period.
According to the Wall Street Journal, YouTube’s global reach is one of its main selling points to advertisers. It comes on the heels of YouTube’s recent redesign of its movie experience.
Alphabet Inc. did not respond promptly to a request for a statement from Reuters.
The upcoming launch will give YouTube a further space of its own to compete with businesses like Roku Inc (ROKU.O) and Apple (AAPL.O) for a share of the already crowded streaming industry as more and more consumers cut the cord on cable or satellite TV with regard on switching to subscription-based streaming services.
The New York Times reported earlier this week about Walmart Inc. involving the discussions on adding streaming entertainment to its membership program with media companies.
The Wall Street Journal published a report on Friday stating that YouTube, a subsidiary of Alphabet Inc., intends to open an online store for streaming video services.
YouTubes’ Short-form video content continues to grow
Google/Alphabet-owned YouTube has given more space and prominence to short-form content, which can be described as videos that are less than a minute long in an effort to compete with the Chinese viral-video platform.
Views of videos under one minute on YouTube increased 135% between the second quarters of 2021 and 2022. In the same quarter two years ago, only 11% of YouTube traffic was made up of short videos; as of July 1, 57% of YouTube views are made up of these quick clips.
Alphabet Inc. (NASDAQ: GOOGL), in comparison to its competitors, has been trading at a price-to-earnings ratio that is almost 20 times lower than its historical average.
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