UPDATED 23:15 EDT / MAY 04 2016

NEWS

YouTube, Hulu both building live subscription television products

Alphabet Inc.-owned YouTube and on-demand streaming video provider Hulu LLC look set to beat Apple Inc. to market, with both planning to launch live subscription television products.

Hulu Chief Executive Office Mike Hopkins confirmed the company’s plans Wednesday, saying that the site will be offering subscribers the ability to stream “live programming from broadcast and cable brands” in 2017 that will include “live sports, news, and events,” The Verge reported.

The confirmation from the company directly follows a Wall Street Journal report Monday that said that Hulu was in negotiations with Fox, ABC, ESPN, FX, and the Disney Channel.

News that YouTube was also in negotiations for a similar service came via Bloomberg who said the video giant was currently building a service called Unplugged “that would offer customers a bundle of cable TV channels streamed over the Internet.”

YouTube is said to have already overhauled its technical architecture for a service in preparation for 2017 launch, however despite having held discussions with NBCUniversal, Viacom, Fox and CBS have yet to secure any rights.

While the form as to which Hulu would offer live channels is not clear from reports, YouTube is said to be working towards offering a “skinny” package that would bundle the four broadcast networks with a smattering of popular cable channels, along with additional offerings such as a collection of less-watched TV channels or smaller groups of channels based on themes.

The sticking point in negotiations, not surprisingly, is said to come down to price, with YouTube wanting to offer the core package for less than $35 a month.

First to market

The push by YouTube and Hulu to offer live subscription television services follows Apple’s failed attempt in 2015 to build a similar service; it’s unknown at this stage as to whether Apple is still trying to build a product but as of August 2015 plans were said to be delayed until at least 2016 due to the company being unable to come to an agreement with the large television networks.

In all cases one of the biggest problems has been with networks, both broadcast, and cable, being unwilling to offer their key channels alone, that is by themselves without being sold in a bundle that includes their lesser watched, minor channels.

It’s not clear whether Hulu and YouTube will be able to overcome these demands, or will simply cave into them; ultimately the race now is about being first to market, and although there is likely room for multiple players in the space, the first mover advantage will definitely give whoever launches first an advantage over their competitors.

Image credit: flashpro/Flickr/CC by 2.0

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