Video service YouTube intends to launch an online store for selling subscriptions to streaming sites, the company has resumed negotiations with entertainment companies to participate in the project, sources told the Wall Street Journal. The company hopes that the new platform will be launched in the fall. Channel Store has been in development for at least 18 months.
YouTube currently allows YouTube TV subscribers to add an HBO Max subscription. On the new site, users will be able to select cloud services in the YouTube menu.
Typically, companies that own streaming hubs receive a share of the income from purchases on their sites. YouTube is negotiating subscription royalty terms with partners. Interlocutors of the WSJ note that the conditions for different companies are different. YouTube is exploring new marketing and distribution strategies to grow subscribers in the face of high competition and slowing growth in the US.
Sources at WJS say streaming platform Peacock has been in discussion with YouTube about adding its services to the channel store. Walmart did the same. The company is in talks with cloud service owners to expand its loyalty program. Netflix and other streaming sites have agreed to become part of Verizon's Plus Play subscription.
Companies are making their services available in as many places as possible to attract as many subscribers as possible, says Chicken Soup for the Soul Entertainment chief executive Bill Rowhana. However, partnerships with other companies will lead to a reduction in revenue and control over customer data.
In 2020, YouTube discussed plans to launch an online subscription store for streaming services. The company is confident in the success of the project due to the scale and diversity of its global audience. More than two billion users visit YouTube every month, according to Google data.
WarnerMedia pulled its HBO Max video service from Amazon Prime Video Channels last year. The company's CEO, Jason Kilar, did not want to share data and provide direct relationships with Amazon customers. A WSJ source said that 4.5 million of HBO Max's 70 million subscribers came from Amazon channels. Currently, Warner Bros. Discovery is in talks to return to Amazon Prime Video.
Some companies resort to bundling their services into packages. Disney is offering bundled subscriptions to Disney+, Hulu, and ESPN+ at a lower price than either one. Analysts say that this format allows you to retain customers longer.
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