Google Inc (GOOG) Heats Up This Space

Google Inc (NASDAQ:GOOG) stock opened higher today, after the Financial Times reported that Google’s YouTube may begin charging viewers for certain video channels as soon as this week. As of this writing, the stock was trading near a 52-week high of $858 per share . The Web search giant has been trying to find ways to monetize its video streaming service since it purchased YouTube in 2006 for a whopping $1.6 billion.

Google Inc (GOOG)The story at this point is purely speculative, though Google Inc (NASDAQ:GOOG) said it is working on “a subscription platform that could bring even more great content to YouTube,” according to the Financial Times. The alleged starting price for these special subscriptions is said to be around $1.99 a month, and would include up to 50 different channels.

This price point isn’t bad compared to what the competition charges for streaming content. Coinstar, Inc. (NASDAQ:CSTR)‘s Redbox Instant, for example, costs $8 a month for unlimited video streaming. However, the service also includes four DVD credits each month that subscribers can redeem at any Redbox location.

Still, price advantage alone won’t help Google Inc (NASDAQ:GOOG) win the digital streaming wars. That’s because Amazon.com, Inc. (NASDAQ:AMZN), Netflix, Inc. (NASDAQ:NFLX), and Hulu are taking streaming to another level with original content.

Meet the contenders
Original content is key for these companies as they fight for consumer eyeballs. Last month, Amazon Instant Video began streaming 14 pilots free of charge in order to gauge audience tastes. Amazon.com, Inc. (NASDAQ:AMZN) now plans to collect viewer’s votes on which original series it should produce. Meanwhile, Netflix’s House of Cards is stealing the show. Moreover, Netflix CEO Reed Hastings said the show had a positive impact on subscriber growth in the first quarter — a trend that should continue as Netflix, Inc. (NASDAQ:NFLX) rolls out new seasons.

Clearly, original content is king. Yet at this point, it is unclear whether YouTube’s new subscription service will include such content. However, according to a report from CNN, Google Inc (NASDAQ:GOOG) has spent more than $200 million in the last year on advances to dozens of YouTube start-up channels.

Going forward, YouTube will need compelling content if it hopes to continue dominating the streaming market. Although, make no mistake, if the company can successfully monetize its YouTube platform, it would certainly move the needle for Google Inc (NASDAQ:GOOG) stock.

The article Google Stock Heats Up the Video Streaming Wars originally appeared on Fool.com and is written by Tamara Rutter.

Fool contributor Tamara Rutter owns shares of Amazon.com and Netflix. The Motley Fool recommends Amazon.com, Google, and Netflix. The Motley Fool owns shares of Amazon.com, Google Inc (NASDAQ:GOOG), and Netflix.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

6 Movies That You Should Watch to Better Understand The Cold War

Top 15 Best Paying Jobs for Women in 2014

Top 6 Things Rich People Do Differently Every Day

5 Retirement Mistakes To Avoid (and Einstein’s Famous Quote)

11 Smartest People in the World

6 Films About the Financial World You Need To Watch (While “The Wolf” is Not Around)

Warren Buffett and Billionaires Are Crazy About These 7 Stocks

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top 6 Tax Scams and How to Protect Yourself

Top Businesses to Invest In

Top 5 Things You Might Be Doing Wrong With Your Business

Top 5 Strategic Technology Trends in 2014

Top Rags to Riches Stories

Parenting Behavior That Promotes Future Leaders

Top 5 Mistakes Made by Small Businesses

Top 5 Most Common and Potentially Devastating Financial Blunders

Top 5 Highest Paying Jobs for Web Designers

Top 6 Most Respected Professions that Also Pay Well

Top 5 Pitfalls Investors Should Avoid

Top 6 Lawyers and Policy Makers Under 30

Top 6 New Year’s Resolutions for Entrepreneurs

Top 7 Locations to Check in on Facebook

Top 5 Mistakes made by Rookie eBay Sellers

Top 7 eBook Publishers in 2013

Top 6 Health Industry Trends in 2014

5 Lessons for Entrepreneurs from Seth Godin

Top 5 Success Tips from Jordan Belfort – the Wolf of Wall Street

Best Master’s in Finance Degree Programs

Top 6 Earning Celebrities Over 50

The most expensive sports to play

Top 7 Earning Celebrities Under 25

Best 7 Online Courses to Take: Free Finance MOOCs

Top 6 Bad Habits that Promote Failure

20 Most Valuable Soccer Teams in the World in 2013

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!