A new television offer competes for a viewer’s money only if it can replace something that viewer wants. YouTube announced a $35 monthly TV membership on February 28, 2017, cancellable at any time. That gave prospective customers a price to consider. It did not establish that the bundle was equivalent to their existing service or that switching would preserve their preferred programming. [youtube]
The supply was substantial but bounded. Variety identified channels from NBCUniversal, CBS, Fox Networks and Disney-ABC Television Group. YouTube’s announcement included the major broadcast networks and ESPN. For a substitution test, those names belong beside a viewer’s actual requirements, rather than standing in for a general promise that all television needs would be covered. [youtube][variety]
Variety also named absences: HBO and Turner networks, including CNN, TBS and TNT; Viacom channels such as Comedy Central and MTV; Discovery networks; and Scripps channels including HGTV and Food Network. These were reported gaps in the announced bundle, not evidence of why negotiations had produced that lineup. A viewer who regarded one of those channels as essential had a concrete reason to question full replacement. [variety]
Our suggested test is to mark required channels as included, absent or still needing confirmation before comparing prices. If an essential channel is absent, the next question is whether another service would still be needed, not whether the headline fee looks attractive. YouTube described a future U.S. rollout, so even a suitable lineup did not establish immediate access. The announcement expanded the set of proposals to assess; it did not prove equivalent competition for every viewer. [youtube][variety]
Source documents
- Finally, live TV made for youhttps://blog.youtube/news-and-events/finally-live-tv-made-for-you/
- YouTube TV: $35 Per Month With 40 Channels, Unlimited DVRhttps://variety.com/2017/digital/news/youtube-tv-bundle-pricing-1201998917/