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Tuesday, December 08, 2015 11:40:51 AM
Seeing as how cable is the pipe that connects me to the web, I won't be dumping it either in order to pay for YouTube red which is pitiful for content as it is. And it would seem that it will be a tall order for Google to put meaningful content on its red service. Disney won't be on it and neither will HBO. Highly doubtful the comedy channel will be either. Maybe Google could potentially sign a deal with the NFL but it's going to cost a bundle.
I don't see this as a meaningful driver of profits. But it's understandable that they need to do something with the looming loss of search revenue on iOS.
Still, I believe Google and Facebook both have a competitive advantage over all other potential and existing players. But NOT a little buy miles and miles. Google already has the infrastructure in place for media buyers. They have an auction based system and TV would just be one more option for media buyers. Today TV is NOT integrated into their other buys. Plus both Google and FB have incredible platforms that traditional media are literally decades behind. They simple do not have the data and have little experience with data. Plus their customers will need help and they are NOT in a position to help.
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