YouTube TV offers a la carte menu
Google launched an a la carte menu through YouTube TV which enables users to buy standalone apps without subscribing to a base plan of channels. Add-on channels include apps such as HBO Max, Showtime, and NBA League Pass. Notably, customers can move in and out of channels as often as they like just as if they subscribed to these apps directly from the provider. That’s because these are not channels in the traditional sense, rather DTC streaming apps making this offering akin to the Amazon or Roku channel store. Subscribers can benefit from receiving one bill and most importantly a single user interface.
The NPD Take:
- Google’s product packaging will allow them to step users up into the YouTube TV vMVPD and grow ARPU, or vice-versa.
- Video distributors are increasingly aggregating multiple distribution channels into a unified offering and UI as such this strategy is like that of Amazon, Roku, Apple and Sling.
Peacock flies high
Peacock reported growth in Q3, now reaching 15M paid subscribers and 30M monthly active users. That’s 2M more paid subs from Q2. This jump was fueled by several factors. First, increased content including NBC moving day-after broadcasts such as SNL, Real Housewives and The Voice from Hulu to Peacock. Second, Peacock aired blockbuster movies from Universal soon after their theatrical release, including the latest Minions and Jurassic Park titles. Lastly, broadcasting Sunday Night football NFL games which has been a big draw for sports fans. Peacock is also the new streaming location for content on Bravo and NBCU has said it would continue to produce original series for Peacock.
The NPD Take:
- It’s notable that the company is communicating its growth as the competition for bundling is ramping up. That is, everyone wants to show scale and high engagement making their service more attractive for a bundle with competitive services. Yep, minimize churn and add subscribers by bundling with the competition is next on the horizon.