Google hopes to compete with iTunes, offer pay TV on YouTube
According to Peter Kafka of MediaMemo, multiple sources have indicated that YouTube hopes to offer streaming TV episodes for a fee. The plan would be similar to what Apple already offers with iTunes: a $1.99 cost per episode. Both sides are said to currently be in early negotiations, but are "optimistic" that a deal can be reached.
But a key difference for consumers would be the fact that the YouTube stream would cost the same price as iTunes, even though it would seem to offer less functionality. iTunes TV and movie downloads are saved locally on the user's system, where they can be shared with a host of Apple devices, including iPods, iPhones, the Apple TV, and other machines.
But YouTube and TV executives reportedly feel that this is simply a "perception problem," and have cited studies that most people who download TV episodes only watch them once.
"Itâs also possible that YouTube may skirt the issue by launching a TV rental business without the big hits that Apple and Amazon offer," Kafka said. "One possibility: It could start by moving immediately to long and mid-'tail' shows and videos that arenât available other places, and donât have to match existing prices."
Google acquired YouTube, the Internet's largest video destination, in 2006 for $1.65 billion. The Web site already offers some ad-supported TV shows for free, and is looking to get into the movie rental business as well.
YouTube also plays a strong role in the iPhone, with a native application included on the device.
As YouTube looks to land a deal for TV episode purchases in 2010, Apple has reportedly been negotiating with networks to provide a $30-per-month subscription plan to deliver TV episodes via iTunes. Reports have suggested that Apple also hopes to launch its new service in early 2010.
Apple's subscription proposal is said to be based on the existing iTunes desktop software, and is not based on any forthcoming hardware like a new Apple TV or the company's long-rumored touchscreen tablet. Industry executives are said to be "intrigued" by the prospect of an iTunes subscription plan, though cable networks are reluctant to sacrifice existing relationships with providers like Comcast.
In October, Apple updated its Apple TV software to version 3.0. The redesigned interface includes a new main menu that gives users instant access to content, including the integrated YouTube.
43 Comments
Start your copiers Mountain View
It's looking increasingly to me like Google and Apple are going to totally own everything in terms of software for the next decade, with Apple taking the high end and Google filling in what would otherwise be Microsoft's place with the free/lesser junkier stuff for the masses.
How long till Microsoft just gives up on the whole idea of being anything but a (crappy) OS maker? I predict major job cuts, dissolution/reorganisation and the cutting loose of most of their divisions at Microsoft by November 2012 at the latest.
This model would cost me more than cable. Never going to work
It may be true that most people only watch iTunes TV shows once (this is true for me most of the time, but not all the time) but the point is that I watch the shows on my Mac at home, my Mac while travelling or occasionally my iPhone on the train/subway or airport. You just can't do this with YouTube.
Not only that, but YouTube has been suffering serious lag recently (so has Netflix for that matter). Are we going to get the constant picture quality changes has bandwidth changes throughout the early evening? I hate that.
Google tried this before with Google Video and shut that down after a year or so...