GOOGL - Alphabet's New YouTube Service Could Mean Monster Growth for These Two Stocks
Alphabet 's (NASDAQ: GOOGL) (NASDAQ: GOOG) YouTube is reportedly launching a marketplace for video streaming services and is in talks with other entertainment companies about participating in the platform. The one-stop streaming shop would allow consumers to subscribe to various services, similar to streaming hubs already offered by Amazon , Apple , and Roku . Referred internally as a "channel store," the Alphabet offering has been in development for 18 months and will create a space for consumers to browse a collection of third-party streaming services subscribable directly through the YouTube app. Consumers will be able to easily compare services by browsing the app icons of participating streaming platforms.
The new YouTube service has the potential to substantially boost AMC Networks (NASDAQ: AMCX) and Comcast (NASDAQ: CMCSA) , whose more minor streaming offerings would benefit from being part of a platform that already has billions of users.
On August 5, AMC Networks' stock fell 15% when the company reported less-than-stellar second-quarter earnings results. The company's streaming services , which include AMC+, Acorn TV, Sundance Now, Shudder, IFC Films, HIDIVE, and Allblk, shined as their combined subscriptions grew by 10.8 million in the second quarter of 2022, and AMC Networks shared that it is on track to hit 20 million to 25 million members by 2025. However, these figures were overshadowed by a slip in operating income, which fell 22% year over year.
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Alphabet's New YouTube Service Could Mean Monster Growth for These Two Stocks