YouTube remains the world’s biggest ad-supported streaming video operator, generating $15.1 billion in ad revenue in 2019. But lately, YouTube and its corporate parent, Alphabet, seem committed to the subscription model, as well.
Earlier in February, Alphabet reported during its fourth quarter earnings call that it has 20 million combined subscriptions for services YouTube Music and YouTube Premium. Also notably, it reported more than 2 million subscribers for YouTube TV, the virtual pay TV service it launched three years ago.
Virtual MVPDs, or vMVPDs as they’re also known, don’t have a great reputation on Wall Street. These live-streamed versions of traditional pay TV services have been offered at loss-leader prices. Many predicted that Google and its YouTube subsidiary—which have given up quickly on unprofitable business before—would cut quickly on the vMVPD game.
But based on YouTube TV’s recent aggressive dealmaking, that doesn’t appear to be the case.
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