YouTube eyes service aggregation with planned ‘channel store’

Google-owned YouTube is reportedly set to launch its own video streaming channel store.

According to the WSJ, YouTube will join the likes of Amazon, Roku and Apple in launching what is being referred to internally as a ‘channel store’. The platform, which is said to have been in development for at least 18 months, would allow consumers to access streamers a la carte through the main YouTube app.

The report goes on to note that YouTube is discussing revenue splitting relationships with streaming partners, though it does not say which streamers would be signed up. It already offers streamers like HBO Max, Starz, CuriosityStream and Showtime to customers in the US via its YouTube TV vMVPD service.

YouTube is one of the most ubiquitous apps installed on smart devices. In 2021, it became only the second ever app on Android to be downloaded from the Play Store over 10 billion times.

Though Amazon, Roku and Apple already have a strong position as streaming service aggregators, Google is evidently confident that it will be able to capitalise on its gargantuan user base to make it a leader in this area. 

Such channel platforms are huge revenue drivers for their operators. Roku’s ‘platform’ segment, which houses its channel aggregation and FAST channels, generated US$673 million in Q2 2022 and is a main area of growth for the company. Amazon and Apple do not give such granular breakdowns of their results, but their prominent placement within their respective UIs would indicate that they are similarly strong performers.