Reportedly, YouTube TV added 600,000 subscribers to its existing 6 million in Q3 2023 after announcing its exclusive rights to broadcast the NFL Sunday Ticket. Data was shared by the Leichtman Research Group. YouTube TV is now on track to become the fourth-largest TV service across all cable and streaming platforms. Let's delve into the details.
Firstly, historically, the FCC has treated cable companies and streaming platforms differently. Cable providers often have to negotiate individual carriage agreements with local affiliate stations, while streaming platforms like YouTube TV may have the ability to negotiate at a national level. Network affiliates may want the FCC to impose similar regulations on streaming platforms, such as YouTube TV, as they do on cable companies. It remains to be seen what the FCC will decide on this matter. Additionally, the FCC requires a fee from cable companies for each subscriber. As more people transition away from cable, the FCC may consider imposing such fees on streaming platforms to compensate for the lost revenue from departing cable customers. This situation is dynamic and worth monitoring, as it may impact your monthly bill.
The influx of 600,000 new customers in Q3 could potentially contribute approximately $525 million annually to YouTube TV, depending on various factors. Just for fun, let’s say conservatively that 25% of these new customers opt for the NFL Sunday Ticket at $250 per year. This would generate an additional $37.6 million in revenue. This calculation does not include existing subscribers who may choose to add the NFL Sunday Ticket to their current service.
These additional revenues will help offset the significant investment Google is making, ranging from $2 billion to $2.5 billion, for the exclusive rights to broadcast the NFL Sunday Ticket on YouTube TV from 2023 to the 2029-2030 season. While some speculate whether Google might abruptly cancel YouTube TV if it doesn't recover its investment fast, others believe that this is unlikely, given the ongoing shifts in TV viewership. Cable companies are losing in the vicinity of 5 million subscribers annually, with streaming platforms gaining many of those departing cable customers.
In terms of subscriber numbers, Comcast leads the pack at #1 with approximately 14.4 million subscribers, followed by Spectrum at #2 with around 14.3 million subscribers. DIRECTV holds the #3 spot with 11.9 million subscribers, and DISH is #4 with roughly 6.7 million subscribers. YouTube TV currently has approximately 6.6 million subscribers and may soon surpass DISH to secure the #4 position.
The TV streaming services landscape, including Hulu+ Live TV, Sling TV, and others, is gaining momentum as consumers seek cost-effective solutions and embrace newer technologies. This market is dynamic, with legacy cable companies introducing their streaming products to remain competitive. Stay tuned for further developments.
We are here 24/7 to answer all of your Internet and TV Questions:
1-855-690-9884