The Wall Street Journal reported on Friday that YouTube intends to open an online marketplace for streaming media services. According to the story, which cited people familiar with the recent discussions, the business has resumed discussions with entertainment organizations about joining the platform, which it is referring to internally as a “channel shop.”
A brief about Youtube Subscription-Based Streaming Video Service Platform:
The platform has at least been in development for 18 months, and it might launch as soon as this fall. The upcoming launch will enable YouTube to join businesses like Roku Inc. and Apple in an effort to gain a piece of the already crowded streaming market as more consumers cut the cord on cable or satellite TV and switch to subscription-based streaming services.
According to Fortune Business Insights, the global market for video streaming was valued at over $372 billion in 2021 and is projected to increase to over $473.4 billion this year and nearly $1.7 trillion by 2029 at a compound annual rate of 20%.
If YouTube’s intentions materialize, it will face direct competition from big players in the market such as Netflix, Amazon, Apple, and Disney, all of whom have well-established services and user bases. According to business data and analyst projections, the combined subscriber bases of these companies total more than 600 million people worldwide.
However, given its immense reach—the network has around 2.6 billion users worldwide—a streaming service from YouTube has the ability to compete with or perhaps outperform such businesses.