YouTube is a popular streaming platform watched by millions around the world. It was started way back in 2005 by three college students with a vision of streaming videos from creators around the world and now, it has become the video giant that uploads thousands of videos each day and provides an income source for many people. YouTube has also created several new platforms apart from video streaming in the form of YouTube Music, YouTube Premium, YouTube Studio, etc., that show its growth.
But it’s been a while since things have been changing for the platform due to rising prices, poor content quality, and limited streaming catalogs. In this blog, we are going to look at whether YouTube is losing its edge due to its rising prices and competitors.
YouTube TV Is Expensive And Not Available Globally
YouTube TV was a complete innovation in terms of a cable alternative that has a subscription model where users could watch 100s of shows anytime. But this has now changed from a value-based model to an expensive subscription-based model. Earlier, the standard packages used to cost $35 way back in 2017, but now it costs around $82.99 per month – almost double what you would expect. Even though this price covers over 100 channels, DVR capabilities, and local network access, the price point isn’t worth the value it offers.
YouTube TV’s biggest drawback is also that it is not available globally. It is only available in the United States; this leaves out millions of potential customers who are looking to get this service. This has led to a growing trend of international users relying on a US proxy to bypass geographical restrictions and gain access.
In fact, the rising price and limited availability present a gap in YouTube’s strategy which is being capitalized by its competitors. Disney+ charges $10.99 per month in the U.S., while Netflix’s standard plan costs $15.49. Both offer international catalogs specific to a region and are also available globally.
Content Availability: Is YouTube Falling Behind?
Another big downside of YouTube is its struggle with original content. While competitors like Netflix have successfully included a vast library of content along with originals like Stranger Things and The Witcher, YouTube has moved away from this by focusing entirely on user-generated content.
Also, Hulu and Peacock have active partnerships with major networks that give them next-day streaming of popular TV shows. This gives them a significant advantage over YouTube where they rely heavily on its live TV catalog without any exclusives or originals to attract new viewers. YouTube TV’s live sports offerings such as NFL Sunday Ticket come with an additional cost that can push the monthly subscription fee even more if you are a sports fan.
Another Growing Threat
YouTube still struggles with its pricing with YouTube Premium and Music, charging $13.99 per month. Spotify’s premium plan costs around $11.99 per month and offers ad-free music and podcasts. Apple Music also comes in at the same rate with high-quality lossless audio and integration with Apple devices. Even though these platforms solely focus on music, they somehow outperform YouTube Music better.
Around 58% of students listen to music while studying, and this presents a huge opportunity to capitalize on the student community by offering cheap prices. But YouTube still isn’t able to capture that difference since their student plans come to around $7.99 per month while Spotify’s comes at around $5.99 which also includes access to Hulu and Showtime.
Is YouTube Still Competitive?
YouTube still remains a top leader with a significant market share where 1 billion hours of content is being watched every day. This is because of high video production capabilities, new features, and a large audience that creators can easily tap into with their content. YouTube is owned by Google and this means it is part of Google’s ecosystem that makes it easier to access, create, edit, or manage content across platforms.
The platform has quickly adapted to the short-form content channel with YouTube shorts that provide users with a new way to publish their content and earn income. It also has excellent live streaming capabilities that are used by millions of streamers and presents itself as a direct competitor to other live streaming platforms like Twitch.
Final Thoughts
Even though all these differences and gaps show YouTube’s drawbacks in terms of serving a large audience, it is still a video streaming leader with over two billion monthly active users and has a good ad revenue policy. It just need to look at its pricing and accessibility strategy to capture more audience and increase its market share.
Since streaming giants like Disney+ put a lot of effort into putting some of their content on YouTube, we may still witness the growth of this platform in the near future as a distinct category among streamers.
