Google (GOOGL.US) streaming strategy adjustment: TV team cuts 10% budget, business focus shifts to YouTube

The Zhitong Finance App learned that, according to people familiar with the matter, Google (GOOGL.US) has cut the budgets of its Google TV and Android TV teams by 10%. According to people familiar with the matter, the team's budget was originally less than 500 million US dollars.

People familiar with the matter revealed that this budget cut could affect a quarter of the team's approximately 300 employees. Although reports indicate that the same team is expanding in other regions such as India, and plans to return the team size to around 300 people or more through recruitment in other fields.

According to people familiar with the matter, Google is shifting its TV business focus to YouTube because the platform has become the top streaming service in the US. The company is considering leadership adjustments and seeking to focus on developing revenue from the platform's various subscription services, including cable TV and music services.

Earlier this year, YouTube tried to recruit someone to replace Lori Conklin, and the global director responsible for TV, film, and sports partnerships has left his job to join Netflix.

A person familiar with YouTube's plans said that the company's leadership is discussing hiring or promoting an executive who may eventually succeed the platform's chief commercial officer, Mary Allen Coe. This candidate will most likely be responsible for all YouTube's paid subscription products.

Christian Osterling, YouTube's vice president of connected TV and infrastructure product management, is a strong internal candidate, the source said.