Send me real-time posts from this site at my email
Motley Fool

Is YouTube Getting too Cozy With its Enemy in New Partnership?

Telecom company Windstream Holdings (OTC: WINMQ) has forged a partnership with Alphabet's (NASDAQ: GOOG) (NASDAQ: GOOGL) YouTube. Going forward, Windstream will feature YouTube TV as a cable television alternative for Windstream's broadband customers.

But the agreement is unusual in that Windstream Holdings' high-speed internet company Kinetic already offers a streaming video service called Kinetic TV.

Image Source: Getty Images.

The partnership may be a preview of the new norm, as traditional cable television crumbles under the weight of cheaper, internet-based alternatives like Netflix or so-called skinny bundles like YouTube TV.

High-speed internet access still requires the physical presence of a local service provider, but how consumers utilize those connections is not limited by geography. As such, cable companies have struggled to compete with cheaper streaming services, which are arguably better positioned to promote their products.

YouTube, for instance, is part of Google, which is not only the world's most-used search engine but also the name behind some of the web's most utilized features like email and file storage. YouTube is already the world's busiest online video platform as well. Hulu, by comparison, sells access to live network broadcasts that qualify it as a skinny cable bundle provider. It's majority-owned by Walt Disney and can draw on namesake content as well as from ABC. Smaller-scale cable providers without their own studios -- like Windstream -- simply can't afford to meaningfully compete on their own.

Not only is it unlikely to be the last, it's certainly not the first such partnership for YouTube TV either. Verizon's Fios, Cincinnati Bell, and Hawaiian Telcom all also feature YouTube's streaming alternative to cable TV.

10 stocks we like better than Alphabet (A shares)
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Alphabet (A shares) wasn't one of them! That's right -- they think these 10 stocks are even better buys.

See the 10 stocks

*Stock Advisor returns as of December 1, 2019

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. James Brumley owns shares of Alphabet (A shares). The Motley Fool owns shares of and recommends Alphabet (A shares), Alphabet (C shares), Netflix, and Walt Disney. The Motley Fool recommends Verizon Communications and recommends the following options: long January 2021 $60 calls on Walt Disney and short April 2020 $135 calls on Walt Disney. The Motley Fool has a disclosure policy.


Source

Popular posts

Welcome!!! Is it your First time here?

What are you looking for? Select your points of interest to improve your first-time experience:

Apply & Continue