When Alphabet Inc (NASDAQ:GOOG) (NASDAQ:GOOGL) announced its long-awaited video subscription service, YouTube Red, it looked another Netflix in a different name. That comparison doesn’t impress Alphabet officials who insist that YouTube Red is completely different from Netflix. According to YouTube’s Robert Kyncl, the differences between the services can be seen in several areas including the source of their content.
There is no doubt Alphabet Inc (NASDAQ:GOOG)’s YouTube Red is going to battle for video subscription dollars with Netflix, Inc. (NASDAQ:NFLX). However, YouTube officials prefer to put a bold line between what they render and what the competition, especially Netflix, renders subscribers.
Talent and content
Alphabet’s $10 a month YouTube Red will initially mostly be loaded with content available on the legacy YouTube platform, except that the subscription videos will be free of ads. Unlike Netflix that looks to outside producers for content either licensed or original programming, YouTube Red will feature content created by homegrown talents.
As such, YouTube Red is getting started from an elevated position in the sense that videos there will come from producers who shot to fame on YouTube on the native platform. These entertainers already have massive following and their coming to YouTube Red is likely to accelerate the adoption of the service.
The other differentiator that Alphabet Inc (NASDAQ:GOOG) likes to point out between YouTube Red and Netflix is that YouTube mostly serves a young audience. Majority of young people not only consume video on YouTube, but to most of them YouTube is synonymous with online video. Netflix on the other hand targets adult subscribers.
The other key differentiator between YouTube Red and Netflix is their technology. According to Alphabet Inc (NASDAQ:GOOG), YouTube Red answers multiple questions from digital video consumers. For example, YouTube Red allows you to stream videos offline and also play video music on the background if you are using a mobile device. As for Netflix, you require strong Internet connection to stream the shows.