YouTube TV Reaches Milestone
Five years after its launch, YouTube TV has surpassed the 5 million user mark (including both paid subscribers and trials), pushing the service to the top of the list of virtual MVPDs such as Hulu+Live TV and Sling TV. YouTube TV’s base plan costs about $65 per month, offering more than 100 channels, unlimited cloud DVR and Spanish-language plan options. Earlier this year, YouTube’s chief product officer disclosed plans to launch a redesign for YouTube TV in 2022 to streamline the user interface, including updates to Library and Live.
The NPD Take:
- While we don’t know how many trials are included in the counts, YouTube TV’s growth is undeniable and, assuming a healthy conversion rate from trial to paid, we can expect YouTube to continue to strengthen its position.
- To remain competitive, YouTube TV will need to keep its price point steady and look for ways to attract new customers while retaining existing ones.
Netflix and Microsoft team up
Netflix will be partnering with Microsoft to support the much-expected ad-supported subscription plan. Microsoft beat out other potential partners including NBCUniversal and Google to partner with Netflix. The fact that Microsoft does not present a competitive threat since it does not operate its own streaming video service was no doubt appealing to Netflix too. No date has been set yet to implement ads. Competitor Disney+ has its own plans to introduce an ad-supported option in the U.S. this year.
The NPD Take:
- It was only a matter of time before Netflix offered a lower-cost tier with the influx of ad-supported options available in the market.
- Since cost is a big factor for many canceling SVOD services, and with continued inflation on the rise, this should help expand Netflix’s base and strengthen their position.
NFL will choose a streamer for its Sunday Ticket this fall
The NFL announced it is launching its own DTC streaming service (NFL+) and its new Sunday Ticket partner will be a streaming service. DirecTV has carried Sunday Ticket since it was founded in 1994, and its contract will expire after this season. No details about pricing have been announced. Apple, Amazon, and Disney (owner of ESPN+) are all in the running to be the league’s exclusive Sunday Ticket distributor.
The NPD Take:
- Given the decline of traditional pay-TV subscriptions, and with the NFL’s foray into the streaming market, we look for this trend to continue.
- The upcoming launch of NFL+ could attract younger viewers and die-hard football fans, as streaming is more accessible and cheaper than pay-TV subscriptions.