Over the next few months Google will be rolling out YouTube TV, a web-based streaming TV subscription service offering more than 40 broadcast and cable networks, The Wall Street Journal reports. Apple’s rumored efforts at putting together a similar package reportedly stalled over negotiations with networks about the cost of programming, but Google has put together a package that includes network broadcasters ABC, CBS, NBC and Fox alongside major cable networks like ESPN, MSNBC and Fox News. Discovery, Viacom, AMC and Scripps are also in talks to be added to the service at a later date. The move is targeting both people who are keen to get rid of their cable subscription and an emerging group of younger customers who have never paid for a traditional cable TV package.
“There’s no question millennials love great TV content,” said YouTube Chief Executive Susan Wojcicki. “But what we’ve seen is they don’t want to watch it in the traditional setting.”
The deal could be a serious boon for Apple TV users if they can access the subscription though YouTube’s tvOS app, but the company hasn’t mentioned anything specific about the Apple TV. Google is expected to be paying around $30 of the $35 subscription fee right back to networks in exchange for their content, and if more providers are added the company may end up making no money at all on selling subscriptions. But where that seemed to be a roadblock for Apple, analysts believe Google will simply make its revenue selling targeted advertising that runs during the shows.
The service will offer up to six user accounts to be created for each subscription, but only allows up to three of those users to watch at any given time. The service will be rolling out soon in select U.S. markets. YouTube representatives declined to say which areas will gain access first, but the company currently has deals in place with local TV stations in New York, Los Angeles, Chicago and Philadelphia.
