Google Explores Subscription Models for New AI Offerings
According to a recent report, Google CEO Sundar Pichai suggested that the company consider subscription-based business models for some of its new AI products.
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The power of learning to drive innovation. Dive into the secrets of transforming talent and empowering employees for a revolution in capability development. In the spotlight, Sundar Pichai unveils Google’s latest marvels: the Search Generative Experience, a portal to a world generative AI, and Google Bard, the virtuoso chatbot set to rival ChatGPT.
With AI, the CEO said there’s an opportunity to evolve Search and the Google Assistant service over the next decade. As time goes by, there will be next paths, just like he has done on YouTube. I think with the AI work, there are subscription models as a possible path as well. What’s a big deal for a company?
it will generate most of its revenue and profit from advertising. The biggest company, Wall Street is getting upset about the big changes to Google Search because Search ads are so lucrative. Turning the traditional Search experience into a ChatGPT-style user interface could create confusion about how these ads appear and perform on Google Search. So, Google is treading carefully.
Surprisingly, Pichai is willing to float the possibility of subscriptions as a possible business model for some of its developing AI services.
The CEO is probably encouraged by the success of YouTube Subscriptions Video business offers YouTube TV, a cable-like service delivered across the internet platform. As you can see the recently launched NFL Sunday Ticket, which lets viewers watch their favourite football games outside their local areas or markets.
YouTube is charging hundreds of dollars per season, on top of more than $70 a month for YouTube TV That is a huge amount for a company that provides free content, and ad-supported internet services. The executives of Google are delighted with the initial response to NFL Sunday Ticket.
“Other” revenue of Google rose 21% year-on-year in the third quarter hit bottom led by strong growth in YouTube subscription revenue. YouTube is charging hundreds of dollars per season, on top of more than $70 a month for YouTube TV. That’s a lot of money for a company that usually provides free, ad-supported internet services. And yet, Google executives said on Tuesday that they’re pleased with the initial response to NFL Sunday Ticket. Google’s “other” revenue rose 21% year-on-year in the third quarter, led by tremendous growth in YouTube subscription revenue.
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