The pattern of parent organizations, such as giant media, entertainment, and telecommunications firms, and their streaming TV subsidiaries having a mutually beneficial alliance has been noticeable.
For instance, YouTube is reported to have 800,000 paying customers. Through paying an additional $9 for programming than the $40 it charges its consumers monthly, the video-sharing website is on the losing end.
Nevertheless, the parent company of YouTube – Google – can afford to lose money in order to reach its target of partaking in the $70-billion worth of the TV advertising market.
YouTube TV is not the lone streaming TV service or multichannel video programming distributor (MVPD) with a gigantic corporate parent organization.
AT&T administers DirecTV Now which has 1.8 million customers. Moreover, Dish Network owns Sling TV which is reported to have 2.2 million customers as of February.
Sony manages PlayStation Vue with over 500,000 subscribers. Finally, with AT&T and Comcast possessing minority stakes, Disney co-owns and recently won the lion’s share of Hulu upon its acquisition of the entertainment assets of 21st Century Fox.
Hulu has nearly 1 million subscribers. Being the five top-ranking virtual MVPDs in the United States by paying customers, these streaming service providers are supported by huge corporate organizations.
These huge corporate firms and their streaming TV divisions coexist in a symbiotic manner, attracting more subscribers, from cord cutters to cord nevers. They also serve as buffers for each other.
For instance, launched in 2016, DirecTV Now gained 342,000 subscribers in the second quarter of 2018. This helped compensate for the 262,000 subscribers AT&T lost grip of with its U-verse TV cable and traditional DirecTV satellite ventures.
DirecTV Now has helped alleviate the subscriber losses of its parent company for the past two years. The wireless mammoth stabilized with respect to aggregate customer numbers in the three services it offers.
In a similar vein, Google can use YouTube TV as an avenue where it can sell advertisements ahead of the broadcast TV season this autumn. Purchasing pricey sponsorships for the NBA Finals and the World Series, YouTube TV has been a priority for Google.
Furthermore, as for Disney which now owns 60 percent share of Hulu, the latter is absolutely lucrative for its new corporate parent due to its over 20 million subscribers.
Disney has expressed its commitment to its streaming service subsidiary and most likely on its subscription video-on-demand (SVOD) offerings.
The mutually advantageous arrangement of large corporate parent organizations and their streaming TV branches reward both the businesses and the customers.
Companies profit from subscriber numbers. Customers, on the other hand, enjoy more entertainment with the numerous streaming TV offerings.