YouTube is rumored to be seeking out licensing deals for television shows and movies as it seeks to strengthen its position in an online video arms race with competitors such as Netflix, Amazon and Hulu. Apple could be among one of its competitors next year with a rumored over-the-top streaming service. According to The Wall Street Journal, YouTube executives are currently in negotiations with studios and production companies in an effort to license content for streaming on the Web. The move appears to be related to the Alphabet subsidiary’s new paid subscription service, YouTube Red.
As opposed to following the same path that Netflix, Hulu and Amazon did by buying streaming rights to older TV and long-form videos, sources claim that YouTube is trying to license new properties from third parties. This content would supplement forthcoming original shows and movies. Licensing fresh content gives YouTube the flexibility via traditional formats such as theaters, cable television and physical media on top of online streaming to Red subscribers.
YouTube appears to be leveraging Alphabet’s ties to Hollywood as it has little experience in licensing subscription content. Similar to Apple’s iTunes, Google Play has active deals in place that allow it to sell digital rentals and downloads to customers. Susanne Daniels, the former president of MTV programming and Kelly Merryman, the former Netflix executive, are said to be working on the initiative.
As of right now, Apple is expected to enter the fray sometime in 2016 with some branded subscription packages. The Cupertino California company recently paved the way with a fourth-gen Apple TV and tvOS App Store but has yet to strike deals with content owners.
Source: The Wall Street Journal
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