Google Cuts TV Team Budget by 10% to Boost YouTube

Google has announced a strategic shift in its streaming services, reducing the budget for its Google TV and Android TV teams by 10%. The budget for these teams, which was already less than 500 million dollars, has been further constrained. This reduction is expected to impact approximately a quarter of the team's 300 employees. Despite this, the team is expanding in regions such as India and plans to restore its workforce to around 300 or more through hiring in other areas.

The company is shifting its focus towards YouTube, which has become one of the top streaming services in the United States. Google is considering leadership changes and aims to prioritize the development of various subscription services on the platform, including cable-like TV and music services. Earlier this year, YouTube attempted to recruit a successor for the global head of TV, film, and sports partnerships, who had left to join Netflix.

A source familiar with YouTube's plans revealed that the company's leadership is discussing the appointment or promotion of a high-level executive who could potentially succeed the platform's chief business officer. This individual is likely to oversee all of YouTube's paid subscription products. The source also mentioned that the vice president of YouTube's connected TV and infrastructure products, is a strong internal candidate for this role.

This strategic shift reflects Google's broader efforts to optimize its resources and focus on areas with the highest growth potential. By redirecting investments towards YouTube, Google aims to capitalize on the platform's strong user base and diversified revenue streams. The company's decision to reduce the budget for its TV teams while expanding in other regions indicates a strategic realignment of its streaming services. This move is part of a broader trend in the tech industry, where companies are increasingly focusing on platforms that offer scalable and profitable business models.