YouTube Launches Streaming-Service Store as Competition Intensifies for Viewers

YouTube is joining a crowded market of big players, such as

Apple Inc.,

Roku Inc.

and

Amazon.com Inc.,

which are all offering a range of streaming services in efforts to provide simplicity, and in some cases, cost savings for consumers.

No company yet has been able to get all major streaming services on board. Most notably,

Netflix Inc.

hasn’t made its streaming platform available for major marketplaces offered by

Apple

and Amazon. 

YouTube, the world’s most popular video platform, said the feature would be integrated alongside user-uploaded content, allowing viewers to easily transition from watching a trailer to purchasing access through a streaming service. Viewing patterns on Primetime Channels will also inform the kinds of videos the YouTube algorithm presents for users.

The services are generally priced the same on YouTube as subscribing directly via the providers. The streaming providers and YouTube will split revenues from any subscriptions and advertising sales gained through the feature. A YouTube spokeswoman declined to comment on the details of the agreements.

For the streaming services, the new hub gives them deeper exposure to YouTube’s millions of users. The partnership “gives us the opportunity to expand our presence on YouTube, broadening our reach and giving consumers even more choice,” said

Jeff Shultz,

chief strategy officer at Paramount Streaming, in a statement.

A division of

Alphabet Inc.’s

GOOG -3.74%

Google, YouTube has increasingly leaned on subscriptions as advertising spending has taken a hit from the economic slowdown, resulting in the first annual drop in ad sales on the platform last quarter.

YouTube TV, a $64.99-a-month online package of cable channels introduced in 2017, crossed more than five million subscriptions and trial accounts in June, a comparable figure to

Walt Disney Co.

’s Hulu + Live TV offering. 

Subscription revenues from YouTube’s ad-free Premium offering and YouTube TV are expected to reach about $9.1 billion this year, according to Credit Suisse estimates. Google doesn’t report financial details for the individual subscription businesses.

Google executives have pitched YouTube as a growing presence on television screens, making it at times both a direct competitor and potential partner for traditional entertainment companies. 

The platform in September captured the largest share of streaming viewership on TVs for the first time, according to Nielsen data.

“I think this can be as big or even bigger of an opportunity for us than what we’ve built with YouTube TV today,” said

Christian Oestlien,

vice president of product management at YouTube. 

The Wall Street Journal previously reported YouTube had renewed talks with entertainment companies about participating in the streaming marketplace.

YouTube has also discussed broadening some of the Primetime Channel agreements to audiences outside of the U.S. and plans to sign up local services as it expands to other countries, said

Lori Conkling,

global head of TV and film partnerships at YouTube. She also suggested more streaming services are coming around to the idea of being available through a hub like YouTube’s.

YouTube could find it challenging to compete without exclusive streaming deals or promotional packages, said Richard Broughton, executive director at the research firm Ampere Analysis. However, the platform’s large audience and ability to promote the service alongside user-generated content could provide an edge, he added.

“Visibility is absolutely key,” Mr. Broughton said. “There are so many different streaming services at the moment…that you need to make sure it’s just one click away.”

YouTube executives said the platform now provided the full range of video entertainment services, from short-form content to cable bundles.

“We fully expect that people will move across the range of choices that we offer here,” Mr. Oestlien said. “We think it’s really complementary, and for people that want it all, there are great services like YouTube TV.”

—Jessica Toonkel contributed to this article.

Write to Miles Kruppa at [email protected]