YouTube, the new Netflix

YouTube is beginning to feel the pressure to jump into the competition of TV and movie online streaming. They have recently announced their plans to provide these services to subscribers of YouTube. They are currently seeking the streaming rights. YouTube has recently begun its subscription service, and this new content would be a way to provide more subscribers. YouTube will be competing with major online streaming services that are already very successful such as Netflix, Hulu, and Amazon. The streaming will be available through the subscription service Red which right now offers ad-free videos and music streaming for $9.99 a month. 

YouTube has been free for viewers since it's beginning, so in order to get people to want to pay they must change their marketing strategy. They have developed two ways of doing this. First they are creating original content, like their competitors already have. They plan to release 10 original movies and series available for Red subscribers only starting in 2016. The second way is by streaming non-original content such as movies and TV shows that are already out. This is what they are currently pursing. According to a source, they are focusing more on  having newer movies/shows as opposed to Netflix who has older movies and shows that have already run their course. They are still deciding on how much content to provide, but they are seeking to have the streaming started in 2016. 

Everything YouTube is doing right now is related to marketing. They have evaluated their competitors and external market environment and have decided they need to make some changes. This is why they have begun a new marketing strategy to try and change their product for a price. YouTube already reaches an international market which provides them some help in catching up with the competitors who are already established and have been doing this for years. By providing new material, they may be able to reach the market that Netflix, Hulu, and Amazon have not yet because people want to see whats new and fresh, rather than what's old and outdated. Plus if their original content is successful, that will also bring in many subscribers. There is hope for YouTube to become a real competitor in this industry if they play their cards right. 

http://www.wsj.com/articles/youtube-seeks-streaming-right-to-tv-shows-movies-1449104356