Alphabet’s (NASDAQ:GOOGL) Google is actively working to strengthen its YouTube TV offerings, particularly by focusing on enhancing its sports content.
A noteworthy initiative is the continuous effort to discount the NFL Sunday Ticket on YouTube TV. The NFL Sunday Ticket package provides access to out-of-market NFL games for YouTube TV subscribers and general YouTube users.
Recently, Google announced a price cut for the NFL Sunday Ticket, reducing it to $39 for the remainder of the 23/24 NFL regular season, excluding playoffs. Additionally, with NFL RedZone postgame coverage included, the price is set at $44.
This follows a previous price reduction in November 2023 when Google discounted the NFL Sunday Ticket to $174, a significant drop from the original price of $349, which was on top of the YouTube TV subscription cost.
Alphabet’s Outlook
The discounting strategy is expected to attract more subscribers to YouTube TV, thereby expanding its viewer base. This move is likely to positively impact GOOGL’s Other revenues, comprising Google Play and YouTube non-advertising revenues, leading to growth in Alphabet’s Google services’ revenues in the future.
Strengthening the Google Services segment is anticipated to contribute to overall performance in the coming days. Google Services is a major contributor to total revenues and has been the primary growth driver for Alphabet. Over the past year, the company’s shares have gained 56.7%, outperforming the S&P 500 index’s rally of 25.2%.
The Consensus Estimate for 2024 revenues is projected at $283.39 billion, reflecting a year-over-year growth of 11.3%. This estimate excludes the impact of Google’s traffic acquisition costs.
For 2024 earnings, the consensus mark is $6.74 per share, indicating a year-over-year growth of 15.6%. This figure has risen by 0.7% in the past 30 days.
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Author Stephanie Bédard-Châteauneuf