YouTube pushing price competition with Amazon on channels business
hapabapa
YouTube (NASDAQ:GOOG) (NASDAQ:GOOGL) is reportedly looking to aggressively compete with Amazon.com (NASDAQ:AMZN) on one of the most profitable parts of the streaming transition.
While Amazon Prime Video offers Amazon Prime subscribers an increasing amount of original movies and TV shows along with programs licensed from Hollywood, one of its most traditional approaches is through Prime Video Channels, where it gives its subscribers an easy route to clicking through and signing up for a range of services offered by other companies.
Amazon (AMZN) usually takes a 50% cut of the subscription fee there, though, and YouTube's own "Primetime Channels" is looking to undercut its rival by taking just 40% or even less, according to The Information.
That's a move that Apple (AAPL) and Roku (ROKU) have tried before without much success, the report noted. Roku hasn't made much of a dent, while Apple has told entertainment execs it's not interested in adding new channels.
With a leading position among streaming players, YouTube (GOOG) (GOOGL) marks more of a threat to Amazon's lucrative business.
YouTubeâs Primetime Channels program has signed up about 45 services to date, including a number already on Amazon, including Paramount+, Starz, and AMC -- but it's talking with "many more mainstream and niche services," including HBO Max parent Warner Bros. Discovery (WBD), according to the report.