Alphabet’s (NASDAQ:GOOGL) Google is taking significant strides to enrich the content offerings on its Google TV platform by partnering with third-party streaming service providers.
Through this latest collaboration, Google TV is introducing a range of apps and services, including ABC, Amazon’s (NASDAQ:AMZN) Prime Video, Apple’s (NASDAQ:AAPL) Apple TV+, AMC, Kocowa, Disney+, Peacock, and NBC, among others. Notably, Google TV has not only rebranded existing services like HBO Max to “Max” but has also integrated support for the Indian streaming service “aha” and continues to expand the selection of free channels on the platform.
Furthermore, the “Live” tab on Google TV supports over 800 channels, encompassing paid services such as YouTube TV and Sling TV, along with over 80 built-in channels that do not require additional app downloads.
In a move to broaden its global reach, Google TV has extended its services to various regions, including Brazil, France, Germany, and Japan.
Alphabet aims to capture a substantial audience among streaming enthusiasts and smart TV users with this strategic expansion.
Growth Outlook
This collaboration aligns with Alphabet’s strategic focus on strengthening its position in the global smart streaming devices market. According to a Statista report, the global smart streaming devices market is projected to experience a CAGR of 14.7% from 2023 to 2030.
The favorable outlook for this burgeoning market is likely to bolster investor confidence in Alphabet’s stock. Year-to-date, Alphabet has achieved a 51.5% gain, surpassing the industry’s 50.3% rise.
Moreover, this initiative is expected to positively impact the performance of the Google Services segment, which constitutes a significant portion of total revenues. In the third quarter of 2023, Google Services’ revenues increased by 10.8% year over year, reaching $67.99 billion, contributing to 88.6% of total revenues.
Our model anticipates Google Services revenues for the fourth quarter of 2023 to reach $72.79 billion, reflecting a growth of 7.3% from 2022. The strength in this segment is anticipated to contribute to Alphabet’s overall financial performance in the upcoming period. Our model estimates fourth-quarter 2023 total revenues at $81.95 billion, indicating a year-over-year growth of 7.8%.
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Author Stephanie Bédard-Châteauneuf 
