Live TV streaming services such as Sling and YouTube TV are increasingly becoming popular in the US due to cable’s high prices. However, according to a new report published by The Information, these companies are actually struggling to make money from their business model.
YouTube TV charges customers $40 a month for a subscription, but sources say that they pay networks about $49 per month for each subscriber. YouTube already increased its monthly fees for new subscribers from $35 to $40 earlier this year, but it’s still not enough. Advertising revenue makes up some of the profits, but right now, it’s just not there yet.
Industry experts estimate that advertising revenue could reach as high as $8 a month per user, and YouTube hopes to eventually generate double of that. For a multi-billion dollar company like Google, YouTube TV isn’t that detrimental to them, but I don’t think the same can be said for smaller services like Sling or even PS Vue.
Via: Android Police
Source: The Information
