Popular NBC shows like Sunday Night Football and America’s Got Talent could be removed from YouTube TV as early as Tuesday if NBCUniversal (CMCSA) and Alphabet’s (GOOGL) streaming service can’t agree on a new deal. In fact, the two sides are currently stuck in negotiations over how much YouTube TV should pay to keep showing NBC content to its 10 million subscribers. However, there is also another issue at play.
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Indeed, YouTube TV wants to stream shows that are currently only available on NBCUniversal’s Peacock app, like Love Island, directly on its platform. This process, called “direct ingestion,” would make watching easier for users, but NBCUniversal is against it. This is because it wants to keep Peacock as a separate app so it can collect viewer data and sell targeted ads. Still, YouTube sees adding Peacock shows as a way to strengthen its position in the TV market and increase Google’s advertising revenue on smart TVs, where ad slots are more valuable.
In addition, NBCUniversal claims that it offered YouTube TV the same deal as other platforms, such as Amazon (AMZN) Prime Video Channels, but accuses YouTube of asking for special treatment. In contrast, YouTube argues that NBC is charging it more than what customers pay on Peacock. Nevertheless, analysts say that if NBC content is removed, it could hurt both companies since it would cut NBC’s revenue and reduce YouTube TV’s appeal on smart TVs.
Is Google Stock a Good Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on GOOGL stock based on 30 Buys and eight Holds assigned in the past three months. Furthermore, the average GOOGL price target of $244.27 per share implies 1.2% upside potential.
