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YouTube CEO Sees Traditional TV as 'Biggest Competitor'

YouTube CEO Sees Traditional TV as 'Biggest Competitor'
(Dollar Photo Club)

By    |   Wednesday, 08 June 2016 10:21 AM


YouTube CEO Susan Wojcicki says despite the growing pressure and competition of online video content from rivals such as Facebook, she views traditional television as her biggest competitor.

When the Wall Street Journal asked her directly to name YouTube’s biggest competitor, she listed Snapchat, Facebook and Netflix.

“In some sense our biggest competitor is the traditional way of watching TV,” she told WSJ.com. “It’s such a big space, and there’s so much opportunity for everyone. We all need to just think about how we can deliver our core proposition better to our users, as opposed to, ‘Oh, Player X has this feature; I need to have it, too,’” she said.

YouTube, a unit of Alphabet Inc.’s main Google Internet business, says it has more than one billion users but struggles to turn a profit, the WSJ reported. She leads several big initiatives aimed at making the platform profitable, including a push into virtual reality, live programming, and a $10-a-month ad-free subscription service launched in October.

However, she also confesses that about half the time she skips the ads that run before YouTube videos, commonly seen as the service’s main moneymaker.

YouTube had more than 180 million unique viewers on traditional computers in February, compared with about 81 million viewers on the No. 2 service, Facebook Inc., according to research firm

“I see an opportunity to reinvent TV. When I look at the future of TV, I think it’s going to be on demand; it’s going to be mobile and cross-device; it’s going to be global; and it’s going to include a diverse set of content,” she said.

Meanwhile, CNBC reports that recent decisions by the likes of Twitter and YouTube to stream popular sports online may push even more consumers to "cut the cord" of their television service and instead watch online, experts claim.

"I think it will have the most dramatic impact on cord-cutting numbers as well. Anecdotally, it feels like sports content has had the greatest hold on consumers that have been reticent to cut the cord," Ramzi Yakob, consultant at London digital agency TH_NK, told CNBC.

"Cord cutting" – a term which describes when consumers stop paying cable or satellite television subscription – has gone on for some time. A report by the Pew Research Center released in December last year suggested 15 percent of people in the U.S. had cut the cord and a further 9 percent had never paid a satellite or cable subscription at all.

Cord cutting has been driven by several factors, but mainly by the increase in consumer choice provided by online services such as Netflix, CNBC explained.

"Once upon a time, if you wanted quality entertainment in your home beyond a handful of TV channels, you needed a cord," Yakob told CNBC.

"In recent years, there's been an explosion of choice and competition, which naturally bubbles up into more competitive pricing, better customer service and actually, better content from a new breed of businesses."

(Newsmax wire services contributed to this report).

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YouTube CEO Susan Wojcicki says despite the growing pressure and competition of online video content from rivals such as Facebook, she views traditional television as her biggest competitor.
youtube, ceo, tv, competitor
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2016-21-08
Wednesday, 08 June 2016 10:21 AM
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