Alphabet’s
GOOGL
division Google is consistently adding features to its online video-streaming service, YouTube.
According to
9TO5Google
, Google is working on a multi-screen viewing capability on YouTube TV. This serves as a testament to the above-mentioned fact.
The capability will be available for the 2023 National Football League Sunday matches.
On the back of the initiative, Google aims to provide an enhanced viewing experience to sports fans. This is expected to increase the adoption rate of YouTube in the days ahead.
This, in turn, is likely to aid the performance of the Google Services segment, which contributes the most to Alphabet’s top line.
Revenues from the Google Services business increased 2.5% year over year to $61.4 billion, accounting for 88.8% of the total third-quarter revenues.
Growing YouTube Initiatives
Apart from the recent move, Google is testing a search engine feature on YouTube, which will help users find a specific content on YouTube videos.
Alphabet announced two updates on its YouTube Partner Program to let users easily join YouTube and make money from the platform, mainly from YouTube Shorts. Alphabet also introduced a Creator Music catalog for adding tracks to videos.
GOOGL introduced handles for YouTube channels to support creators in establishing their distinct presence and brand on YouTube.
With consistent efforts, Alphabet remains well-poised to rapidly penetrate the booming global video-streaming market.
Per a Precedence Research
report
, the underlined market is expected to reach $1.7 trillion by 2030, seeing a CAGR of 18.5% between 2022 and 2030.
Competitive Scenario
Given the upbeat scenario, not only Alphabet but other major companies like
Amazon
AMZN
,
Apple
AAPL
and
The Walt Disney Company
DIS
are making strong efforts to expand their market share in the video-streaming space.
Amazon, which has lost 49.8% in the past year, is gaining traction among customers on the back of its video on-demand service, Prime Video. On AMZN’s video platform, viewers can watch movies, TV series and Amazon Originals. Amazon’s recent initiative to build a stand-alone application to stream live sports content remains noteworthy.
Apple is witnessing solid momentum across its video-streaming platform, Apple TV. Apple’s growing original and regional content portfolio is helping it expand its user base. AAPL’s growing interest in sports streaming remains another major positive. Shares of Apple have been down 29.9% in the past year.
Disney is riding on the growing popularity of Disney+, owing to a strong content portfolio and a cheaper bundle offering. Moreover, DIS’ growing sports streaming initiatives remain a positive. Disney recently renewed its deal with Formula 1. Per the terms, ESPN Networks in the United States will continue to show Formula 1 races through the 2025 season. Shares of DIS have lost 41.6% in the past year.
Nevertheless, Alphabet’s growing sports streaming efforts, strategic partnerships and strong service offerings are helping it gain a competitive edge against the aforesaid peers.
Consequently, this will help GOOGL win the confidence of the investors in the near and long terms.
Shares of GOOGL have been down 35.3% in the past year compared with the
Computer and Technology
sector’s decline of 33.2%.
Currently, Alphabet carries a Zacks Rank #3 (Hold).
You can see
the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
.
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