Google, a division of Alphabet (NASDAQ:GOOGL), is intensifying its efforts to expand its presence in the streaming industry through Google TV. This is evident in its endeavor to broaden the range of free streaming options available on the platform. The company’s latest move involves the introduction of 25 new free channels, featuring popular shows such as Top Gear, Baywatch, and various game shows. Additionally, the expansion will encompass music channels, multicultural entertainment, and much more.
This development follows closely on the heels of Google’s recent initiative, which saw the inclusion of more than 800 live TV and free TV channels, including well-known names like Tubi, Plex, Haystack News, NBC, ABC, CBS, and FOX. The lineup encompasses a variety of shows, including favorites like Westworld, Law & Order: SVU, and The Walking Dead.
With these additions, the total count of built-in free channels on Google TV reaches 100, offering users an even broader range of content. Furthermore, Google is taking steps to integrate YouTube’s NFL Sunday Ticket into Google TV for the current season in the United States, aiming to attract football enthusiasts and create momentum around the platform.
Promising Growth Outlook
With its expanding selection of free streaming content, Google is strategically positioned to tap into the growing demand for free ad-supported streaming TV (FAST) and channels. As rising inflation prompts consumers to cut back on discretionary spending, the appeal and adoption of free streaming services are on the rise.
Beyond the enhancement of its free streaming offerings, Google is also notable for its integration of over 30 streaming services into Google TV, allowing users to access content from multiple services in a single location. This integration encompasses not only YouTube TV and Google TV but also popular platforms like Disney+, Amazon’s (NASDAQ:AMZN) Prime Video, Hulu, HBO Max, HBO Go, Comcast’s (NASDAQ:CMCSA) Peacock, Comedy Central, Pluto TV, Viki/Rakuten, Fox Now, Paramount+, and ABC, among others.
Google is committed to delivering an enriched video streaming experience, a strategy that is expected to accelerate the adoption of Google TV in the near future. This, in turn, is anticipated to positively impact the performance of the Google Services segment, a major contributor to Alphabet’s revenue.
In the third quarter, revenues from the Google Services business rose by 5.5% year over year to $66.3 billion, constituting 88.8% of total revenues for that period. Projections indicate that the segment’s revenues for 2023 will amount to $267.05 billion, reflecting a 5.3% increase from the previous year.
Alphabet’s Persistent Drive
With its ongoing efforts, Alphabet is positioned to make substantial inroads into the rapidly expanding global video streaming market. According to a report from Precedence Research, this market is projected to reach $1.7 trillion by 2030, with a compound annual growth rate (CAGR) of 18.5% between 2022 and 2030.
The robust potential of GOOGL in this dynamic market is likely to foster investor confidence in the stock. Year to date, the stock has yielded a notable return of 50%.
Competitive Landscape Following in Google’s footsteps, Roku (NASDAQ:ROKU) recently announced a collaboration with NBCUniversal (NBCU), a Comcast-owned entity. This partnership aims to introduce new linear content options to Roku’s platform, including a diverse array of popular programming from the NBCU Global Distribution library.
Simultaneously, Amazon offers Amazon Freevee, an ad-supported video-on-demand streaming service that provides audiences with a wide range of hit movies, shows, and Originals at no cost.
Nevertheless, Alphabet’s ongoing commitment to fortify its FAST offerings is expected to reinforce its competitive standing against the aforementioned industry peers.
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