YouTube on TV via FreeSat – Is Google Eying TV Ads ?
Google’s Second Hottest Internet Property – YouTube has partnered with Freesat, a satellite television operator in the UK, to bring YouTube’s content in the living room. Freesat’s service is free of monthly subscription costs, although users must purchase a set-top box. Freesat delivers digital content directly to 3 million TVs across 1.7 million households in the UK. FreeSat delivers 60 “broadcast-style” channels and will be available on-demand.
Google is extremely focused on extending YouTube’s presence from small screens (desktop PC, laptop, tablet, smartphone) to large screens (TV). Google has deemed YouTube a key strategic growth priority, and we believe that coupling the YouTube content strategy with broad direct-to-TV availability may finally make 2013 a year of Monetization for YouTube.
Is Google Eying the TV Advertising Platform ?
Google appears interested in demonstrating the value of YouTube’s pay-for-performance TrueView Video Ad formats to traditional TV advertisers. Beyond Doubt, Google possesses both the advertiser relationships and analytics capabilities that may allow it to begin competing aggressively for offline Video Ad dollars.
Overall, for Google social networks are less of a threat than feared, mobile is more incremental than cannibalistic, and as the MMI integration progresses smoothly as Mobile advertising is an $8 Bn gross revenue, though non-search and small screen Ads have lower margins. In other Verticals, Google’s history of innovation suggests a reasonable opportunity to capture meaningful share in travel, local, Continued success with Android, or other new areas.