Google hasn’t had enough yet, even after getting stringent about content quality and also with the inclusion of the recipe search feature into its larger than life array of search options. Google is at it again. Reportedly, the Search Giant is expected to launch a Netflix version of a subscription movie service with YouTube. The launch would happen initially in certain European countries, and the first entrant country will be the United Kingdom.
Google’s online video streaming sister concern YouTube is supposedly going to include this service under its belt. The initiation is planned for Europe as of now since the movie market (more essentially the online movie market) is certainly in its nascent stage there. Hence it seems to be a very wise decision to setup the base camp at UK first before expanding into the US, wherein Netflix already has a large market-share and also with the existence of another similar offering from Amazon. It is now understood that YouTube’s latest movie subscription service faces direct competition from Netflix and Amazon. In Europe the major player is Lovefilm, which is set to be acquired by Amazon. It will be fitting for YouTube to use its already established brand name and leverage the same in the market and capitalize prior to Amazon’s take-over of Lovefilm. By doing so, YouTube can also reach to other countries where it is doing well, and thus expand largely.
According to the New York Post, Google is planning to spend around $100 million for this new service, and the spend will be mostly for content deals with movie studios and other premium content providers. “Google is going to be launching channels in Europe and will launch a subscription video-on-demand service,” one Hollywood executive said, “They are going to spend $100 million on content.” Google’s entertainment kingpin Robert Kyncl is understood to be heading this project, who apparently joined YouTube after leaving Netflix in order to give this new Google project a push to the skies.
Apart from its primary service of viewing videos online, YouTube’s existing movie service comprises one-off movie rentals and some free films that are uploaded by users. This particular service has suffered since the content has been user-generated. But now, the good news is that Google faces a simple challenge of eliciting audiences to view YouTube’s video service as one that is not just user-generated but also includes professional content. Seems a simple task, but to do so with competition all around who have already mastered it, is not a simple task. The thing that makes me happy is that there is one more product (service) option to choose from.