Business Success of Streaming Companies

It is hard to see how profitable all these companies are doing in the stock market as the majority of these are services offered by bigger companies that control a lot more than one industry. Moreover, many of these companies aren’t yet big enough to make a profit.

YouTube TV is one of those services. As YouTube has the banking to support the project, it doesn’t hurt them. However, per user of YouTube TV, Google (YouTube TV’s parent company) loses $9 a user. (https://www.fool.com/investing/2019/04/16/youtube-tv-still-isnt-profitable-after-its-price-i.aspx) YouTube TV just hit one million subscribers and they also raised their subscription cost by $10 as they are still losing money. However, as the number of subscribers grows, they are expected to start to turn a profit in time.

To further my point, the numbers of subscribers in the US to Sling TV continues to grow, albeit more slowly recently. Statistics show that they have doubled their subscribers over the 2 year period to 2018. This shows the viability of the streaming services as a whole and allows us to predict that they will hit a point where they start to make a profit. As soon as these businesses start to make more of a profit it will pave the way for a better future for these types of services.

(Sources linked above)
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