With so many streaming video platforms out there, Alphabet’s YouTube (NASDAQ:GOOGL) faces a whole lot of competition. However, a new development may give YouTube TV an extra edge and carry it to the forefront of the streaming market. That new development is just three simple words away: NFL Sunday Ticket.
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Analyst Ronald Josey suggested that the football streaming service could help boost subscriber counts on YouTube TV. The platform already boasts about five million subscribers to its credit so far; that number changes regularly thanks to trial users. However, adding football to the lineup could be a winner.
However, not everyone is quite so sure. Wedbush analyst Michael Pachter noted that the YouTube TV package with Sunday Ticket is a “loss leader.” Pachter noted that, at the current price of $64.99 per month, he doesn’t “…think they make a penny at that level.” That, in turn, could suggest imminent price hikes and the potential to lose customers along with the price hikes. In addition, Macquarie analyst Tim Nollen noted that Sunday Ticket wasn’t profitable when it was DirecTV’s (NASDAQ:DTV) bailiwick.
Nevertheless, Alphabet’s remarkable diversification should give YouTube TV the chance to find out the impact Sunday Ticket will have. Analyst consensus calls Alphabet a Strong Buy, with a unanimous Buy rating overall. The stock’s average price target of 125.76 gives it 41.03% upside potential.
