Alphabet’s (GOOGL Quick QuoteGOOGL ) division Google is leaving no stone unturned to add features to its online video-streaming service, YouTube.
According to 9TO5Google, Google added homescreen widgets to YouTube for iPhone and iPad users.
The widgets include Quick Actions, Search YouTube, Home, Shorts, Subscriptions and Search.
Quick Actions lets users quickly search and browse YouTube. The Search YouTube permits users to immediately use the keyboard or microphone, while the Search widget also allows users to search anything on YouTube swiftly. Users can click on Home, Shorts and Subscriptions to quickly open the respective feeds.
With the introduction of recent widgets, Google aims to provide an enhanced YouTube browsing experience to iPhone and iPad users. This is likely to boost the adoption rate of YouTube.
This is expected to aid the performance of Google Services segment which contributes the most to Alphabet’s top line.
The Google services generated revenues of $62.8 billion, accounting for 90.2% of the total second-quarter revenues. Revenues increased 10.1% from the prior year quarter’s level.
Alphabet Inc. Price and Consensus
Alphabet Inc. price-consensus-chart | Alphabet Inc. Quote
Growing YouTube Initiatives
Apart from the recent move, Alphabet introduced handles for YouTube channels to support creators in establishing their distinct presence and brand on YouTube.
Alphabet is further gearing up for bringing a redesigned YouTube video screen to aid users with an improved video-streaming experience.
GOOGL announced two updates on its YouTube Partner Program to let users easily join YouTube and make money from the platform, mainly from YouTube Shorts. Alphabet also introduced a Creator Music catalog for adding tracks to videos.
With consistent efforts, Alphabet positioned itself well to rapidly penetrate the booming global video-streaming market.
Per a Precedence Research report, the underlined market is expected to reach $1.7 trillion by 2030, seeing a CAGR of 18.5% between 2022 and 2030.
The market is likely to witness a CAGR of 21.3% during the same forecast period according to a Grand View Research report.
We believe Alphabet’s growing prospects in this potential market is likely to aid it in winning investors’ confidence in the near term.
Shares of GOOGL have been down 33.4% in the year-to-date period, outperforming the Computer and Technology sector’s decline of 38.3%.
Given the upbeat scenario, apart from Alphabet, other major companies, including Apple (AAPL Quick QuoteAAPL ) , Amazon (AMZN Quick QuoteAMZN ) and Netflix (NFLX Quick QuoteNFLX ) , are making strong efforts to expand their presence in the video-streaming space.
Apple, which has lost 22.1% in the year-to-date period, is continuously witnessing solid momentum across its video-streaming platform, Apple TV. Apple’s growing interest in sports streaming remains a major positive. Recently, AAPL signed a multi-year agreement with Nike to create and produce sports movies. Further, its growing original and regional content portfolio is helping it expand its user base.
Amazon is gaining traction among customers on the back of its video on-demand service, Prime Video. Prime Video offers movies, TV series and exclusive Amazon Originals, keeping users glued to its platform. Shares of Amazon have been down 35.8% in the year-to-date period.
Netflix is riding on its diversified content portfolio, attributable to heavy investments in the production and distribution of localized and foreign-language content. Recently, NFLX expanded its partnership with Dark Horse Entertainment. Per the terms of the deal, Dark Horse will continue to give Netflix a first look at its IP for both film and TV. Netflix has lost 61.8% year to date.
Nevertheless, Alphabet’s growing efforts toward video-streaming are expected to continue helping it gain a competitive edge against aforesaid peers.
Currently, Alphabet carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.