Google: YouTube price increase doesn’t really change anything

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We just found out that Alphabet (NASDAQ:GOOG)(NASDAQ:GOOGL) is pushing up the price of YouTube TV. It’s coming soon:

Effective April 18, 2023, the monthly price will be revised from the previous $64.99 to $72.99, according to an email sent to subscribers on Thursday.

An update for our members. As the cost of content has increased and we continue to invest in our quality of service, we will adjust our monthly cost from $64.99/month to $72.99/month after 3 years to offer you the best possible TV service.

Here are 5 things that are more important

Competition in the advertising market: GOOGL’s advertising business, which accounts for the majority of its sales, is facing increased competition from companies such as Amazon (AMZN) and Facebook (FB). Google must continue to innovate and deliver value to advertisers to maintain its market position and revenue growth.

Regulatory scrutiny: GOOGL faces regulatory scrutiny in several areas, including antitrust, privacy, and content moderation. The outcome of ongoing investigations and potential new regulations could have a significant impact on Google’s business and stock price.

Cloud Computing Growth: GOOGL’s cloud computing business is growing rapidly and could become an increasingly important part of its revenue. However, the company faces stiff competition from established players like Amazon and Microsoft (MSFT) and needs to continue investing in its infrastructure and services to remain competitive.

Innovation and New Product Development: GOOGL’s success is built on innovation, and the company must continue to develop new products and services to drive revenue growth. Focal points could be artificial intelligence, autonomous vehicles and health technology.

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Macroeconomic Trends: GOOGL, like all companies, is influenced by macroeconomic trends such as interest rates, inflation and economic growth. Changes in these factors could impact Google’s revenue growth and profitability.

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Google Services segment Google Cloud segment Other Bets segment

All three companies generate significant advertising revenue, with advertising accounting for a large portion of their total revenue. They all use data and targeting to serve ads to users based on their behavior and interests. They all offer self-service advertising platforms that allow advertisers to create and manage advertising campaigns.

GOOGL’s advertising business is primarily based on search engine advertising through its search engine and Google Ads platform, while META’s business is based on social media advertising through its flagship platform and other company social media apps (Instagram, WhatsApp, etc.). and AMZN based The business is based on e-commerce advertising through its marketplace and advertising services. GOOGL and META offer display advertising on their platforms, while AMZN mainly focuses on product listings and sponsored search results on its e-commerce platform. GOOGL and META use their vast data resources to deliver targeted ads to users, while Amazon uses its data on users’ purchasing behavior and interests to serve ads on its platform and on off-platform websites. bring things together

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Reduced advertising budgets: Advertisers can reduce their advertising budgets or postpone advertising campaigns during a recession to save money and maintain profitability. This can lead to lost revenue for advertising platforms and media companies.

Shift to performance-based advertising: Advertisers may be transitioning to performance-based advertising models such as pay-per-click or affiliate marketing, which offer a more measurable return on investment compared to traditional advertising models such as branded advertising.

Changes in advertising mix: Advertisers can shift their advertising mix to focus on lower-cost channels like digital advertising and reduce spend on traditional advertising channels like TV and print.

Lower advertising prices: During a recession, advertising prices can fall as media companies and advertising platforms compete for a smaller pool of advertising dollars. This can benefit advertisers who can negotiate better prices or get more value for their ad spend.

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