YouTube as a Streaming Hub? Why Such a Deal Could Be Big for Alphabet

Take it with a grain of salt, since Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) has neither confirmed nor denied it. But if news website The Information's report is accurate, YouTube could soon allow customers of streaming services like Netflix (NASDAQ: NFLX) or Walt Disney's (NYSE: DIS) Disney+ to access their content using YouTube's interface.

The development would push the video platform deeper into a lucrative arena, but an arena that isn't exactly in Alphabet's wheelhouse. Alphabet's YouTube enjoys an edge on other names in the space, however, including powerhouses like Netflix. That is, the sheer scope of its reach means millions of prospective paying customers are just a click or two away from signing up.

The extent of YouTube's grasp on the global video market depends on how you measure it. If you're talking only about paid subscriptions, Netflix rules: The platform is regularly accessed in 87% of U.S. households. Prime Video, from Amazon.com (NASDAQ: AMZN), is running a distant second, with 53% of the nation's homes using the service. Disney's Hulu isn't too far behind with a 41% penetration rate, all according to estimates from eMarketer. YouTube doesn't factor in because (with the exception of YouTube TV and YouTube Premium) it's mostly a non-subscription platform.

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Source Fool.com