YouTube Introduces Streaming Television Service

YouTube is throwing its digital hat into the traditional television realm with the introduction of YouTube TV, a new standalone app and service available for $35 per month. The new Internet-based service will allow subscribers in US markets to get access on any connected device to networks such as ABC, CBS, Fox, and NBC, along with sports networks and dozens of popular cable networks. The service will launch first in major US markets and the company is currently accepting email addresses to be notified of local availability.

This news comes at a time when cable television has already been experiencing growing consumer cord-cutting among connected consumers who favor alternative streaming services such as Netflix, Hulu, and AmazonPrime video. With high speed connectivity becoming increasingly pervasive, consumers are learning how to live life online through apps, the Internet of Things (IoT), and other always-on devices. To them, cutting the cord isn't as much of a negative choice as much as it is a reflection of their digital lifestyle. They're trading in their set-top boxes in droves for Google Chromecast, Apple TV, Amazon FireStick, Roku, Dish's Sling TV, AT&T's Direct TV, etc.

The practice of canceling or forgoing a cable television subscription or landline telephone connection in favor of an alternative Internet-based wireless service.

According to GfK’s 2016 Ownership and Trend Report, 25% of US homes don’t subscribe to a pay-TV service. And in 2016, it's estimated that 12% of consumers cut the cord.

Broadcasting live from YouTube Space LA to unveil the news, Chief Executive Susan Wojcicki, described the company's real-time, always-on consumer: "YouTube TV is designed specifically for the needs of a new generation of TV fans who want to watch what they want, when they want, how they want, without commitment."

YouTube Product Chief Neal Mohan argued that the product is designed for the discerning digital consumer. According to Mohan, the company has been working on YouTube TV for two years. A cloud DVR with unlimited storage space to watch saved content on-demand is included in the base package. The service includes a recommendation system powered by Google’s AI. As a jab to other digital TV services, Mohan also promised "reliability and scalability."

The new cable-alternative inherently caters to a Millennial audience raised with YouTube as its own pseudo-television network. To them, smartphones and tablets are the TV. The idea of cable subscription was already a stretch to digital natives. But with a strong foothold in the minds of younger and more connected consumers, YouTube TV could be a seamless up- or cross-sell to millions of existing users. And for those hardcore YouTubers, your favorite YouTube celebs and cat videos will always have a place in your YouTube TV network.

Brian Solis is a world renowned digital analyst at Altimeter, a Prophet company, keynote speaker, and author. His latest book, X: Where Business Meets Design, explores the future of brand and customer engagement through experience design. Follow him on Twitter and LinkedIn. Invite him to speak at your next event.