The introduction of YouTube TV marked another step toward Internet TV. YouTube has grown from a once random collection of video content into a major source of content channels and entertainment. How will YouTube TV impact the future of cable and satellite television?
By Karen White
First there was broadcast TV, followed by cable and satellite TV, followed by streaming TV on the Internet. The newest addition is YouTube TV which is a streaming service, but its introduction represents a leap forward in the future of the entertainment industry.
In the past, YouTube offered recorded video content that anyone could post. It did not offer live television, and there were no bundles of channels to buy like those offered by major media companies such as AT&T and Charter Spectrum. With the introduction of live television and bundles of channels, the future of TV seems virtually sealed.
Consumers are increasingly moving away from cable and adopting Internet TV, and the addition of YouTube TV is a major leap forward in the move toward the next generation of presenting live television. YouTube is forward–thinking and holds a glimpse into the future of satisfying entertainment options for millennials and younger generations.
Enter YouTube TV
YouTube TV was introduced in February 2017 as a subscription service. Initially introduced in a limited number of markets, it will be rolled out into new markets over time. YouTube TV takes the online social media site into new territory. To date, YouTube has been a repository of video content that any person or business could post, but it did not offer live television. That changed with YouTube TV.
The subscription service offers major network news broadcasting and other shows. Subscribers pay a monthly fee for access to a bundle of channels. One of the nice features is that the shows can be watched on any device, including a mobile phone. YouTube TV also offers Cloud DVR, which enables viewers to record shows and save them in the cloud for up to nine months to watch at a later time. Up to six people can access the service, making it appealing to families. Channels offered include the familiar news channels – ABC, NBC, CBS and Fox – but there are a host of other popular channels that these companies own that will be included in the subscription service, like ESPN, USA, and SyFy, to name a few. In addition, paid subscribers will include access to original shows and movies.
YouTube TV is not the first Internet TV. Hulu and Sling TV are just two options that have been around a while. What YouTube TV does do is pressure the cable companies in various areas. For example, YouTube TV is a subscription service that can be cancelled without a termination fee, and there is no need to rent a cable box.
YouTube is attempting to be an entertainment industry disrupter which is Google's way of doing business – innovate and develop new business models. Google purchased YouTube in 2006, and the social media site has grown and consistently added new features. However, its most important contribution to the entertainment industry in the eyes of many is its influence on the democratization of content.
Global Communities of Ideas
When TED Talks began appearing on YouTube, the social media site gained new appreciation as a communication tool. TED is a nonprofit dedicated to spreading global ideas. TEDx Talks offers international speakers who present locally driven ideas and elevate them to a global stage – "ideas from communities around the globe." People around the world can watch global experts give speeches on a variety of topics, including leadership, global health, data, art, grief and technology.
YouTube invites amateurs and experts alike to create channels that can stay local or go global. To accommodate the channels that reach global communities, users can separate content into separate channels by language, maintain a single global channel with multiple language content, or maintain one global channel with supporting local channels. Users can access Creator Academy to learn how to use built-in translation tools and to make content available around the world.
A simple idea of posting and sharing homemade videos online has grown into a personal and business marketing strategy. Proof that YouTube has earned its place as an entertainment disruptor is the fact that some of the mega-media corporations participate in the YouTube Partnership program. "YouTubers" or individuals continue to dominate video production, and that is an indication the full power of YouTube for businesses and entrepreneurs has yet to be realized.
With more than a billion global users, YouTube already reaches more millennials than cable networks. One reason is the ability to post personal videos, but the digital generation also does not want to be tied to a cable in order to find entertainment. They want mobile access or to sit in a coffee shop and watch a show on their laptop. They also want innovative programming. YouTube TV is already offering unique shows and much more is coming. Gen X and Gen Z are forcing the traditional media companies to recognize YouTube as a content creator with monetary value other than through advertising.
Internet TV for Digital Generations
Though YouTube TV still has a long way to go to be a serious contender with Hulu, Netflix, AT&T and other major media companies, it is sending clear signals that Internet TV is the future.
It is also giving the entertainment industry notice that millennials and younger generations are the future customer base, and that base is not satisfied with cable TV. Cable TV continues to dominate, but one reason is the millions of baby boomers who prefer to stay with traditional cable options.
One of YouTube's main advantages is that people can find anything of interest to watch, whether it is the latest makeup trends, a TED lecture on STEM opportunities, or a music video. Is virtual reality in the future of YouTube? Probably so. Is co-viewing and social television in the future of YouTube? Most certainly.
The entertainment industry is on the cusp of real transformation and, once again, Google is leading the way with YouTube. The opportunities for innovative creators are unlimited, especially in the areas of diversity and global programming.