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Source: http://www.businessinsider.com
YouTube TV is now available in 10 new US cities, bringing its total US presence to 15 markets, furthering its aim of capturing young mobile-centric subscribers, according to TechCrunch. All but one of these additional US cities being expanded into will include live local feeds from major broadcasters Fox, CBS, NBC, and ABC. YouTube TV was initially only available in the five US cities at the time of its launch in April. Below are YouTube TV’s selling points it can pitch when expanding into new markets:
- Brand awareness: YouTube was the top brand in terms of "coolness" and "awareness" for millennials aged 18-24, according to a study by Google. YouTube’s strong perception among its target age group could benefit its expansion of YouTube TV.
- Lower price point compared to cable: YouTube TV is priced at $35 per month, which less than half of the average cable subscription costing roughly $100. The relatively low price point could attract younger viewers who were previously discouraged by cable subscriptions prices to try Pay TV. However, $35 is in the range of other digital TV streaming services like SlingTV and Hulu Live. TV streaming services are all similar in terms of functionality and content library, and differentiating subscription products (beyond original and exclusive content) will be an ongoing challenge. This could possibly lead to price wars – a boon for consumers looking for inexpensive streaming packages.
- Focus on younger viewers: YouTube’s aim of capturing cord cutters and cord nevers seems to be panning out — 50% of traditional TV viewers are over 49, while over half of YouTube TV’s viewers are aged 13-34, according to Nielsen cited by TechCrunch. Additionally, YouTube has an engaged younger viewer base — 67% of consumers aged 13-24 indicated they ‘cannot live without’ YouTube in a 2016 survey conducted by Defy Media — it could potentially upsell to YouTube TV.
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