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The YouTube TV platform is a massive negative item in the YouTube budget, says an analyst. Reports Kaldata.
According to Colin Dixon of nScreenMedia, YouTube TV is probably losing money from every one of its subscribers. The reason is that much more money is paid for new content than earned from subscription fees.
With YouTube TV, the company is trying to interfere with the dynamic streaming video market, but it has its own cost. Dixon's forecast is that its creators receive about USD 35.72 for their content on YouTube TV, while subscribers pay USD 35 to view it. This aggressive pricing policy on YouTube and Google differs from the practice of traditional TV and cable operators and makes entry into the market a costly endeavor.
"Getting the content license is one thing, but taking it for a good deal is quite different," said the analyst.
YouTube pays more than even big companies such as Comcast and Disney.
"How much more is not known, but even five percent means that YouTube pays more for licenses than it gets from subscribers."
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