Sports events streaming is a major aspect of online streaming and companies like Google Inc (NASDAQ:GOOGL) can take advantage of these events to make money. An article on Quartz said that many experts think that Google Inc (NASDAQ:GOOGL) should buy National Football League or EPL streaming in order to have direct channels for streaming. This way, the search engine giant can get huge streams of revenue. But the situation is not as easy as it looks. NFL costs around $1.5 billion annually whereas EPL costs around $1.15 billion. This means that Google Inc (NASDAQ:GOOGL) could easily buy both these platform because it has got huge piles of cash ($65 billion revenue). But monetization is the problem and this is the only factor which is holding back Google Inc (NASDAQ:GOOGL).
The source said that people don’t want to pay to watch matches and streaming around the world. Google Inc (NASDAQ:GOOGL) will have a very limited space and customer base even if it acquires the sports streaming services.
The source quoted an expert who thinks that Google Inc (NASDAQ:GOOGL) cannot compete with the existing sports streaming players like Sky Sports. He thinks that advertisers will not be happy if Google Inc (NASDAQ:GOOGL) taps into the field of streaming because Google Inc (NASDAQ:GOOGL) will have to charge them 13% more with ads services in order to complete the costs.
Google Inc (NASDAQ:GOOGL) can make some disruptive steps in the video streaming domain. People don’t want to see online ads on websites, but they can sit through ads if they come in the live streaming. Google Inc (NASDAQ:GOOGL) has some pleasant experiences with its Youtube live stream services for some sports events.
David Tepper’s Appaloosa Management Lp owns around 600,000 Google Inc (NASDAQ:GOOGL) shares.
Suggested Articles:
Strategies Hedge Funds Use to Make Huge Returns
