Elon Musk’s new video venture, aiming to offer long-form video streaming through X (formerly Twitter), faces significant hurdles from established players in the industry, according to analysts who spoke with TechNewsWorld.
Reports emerged last week about Musk’s plan to introduce a video streaming service integrated with X, which would allow users to watch long-form videos on Samsung Smart TVs and Amazon’s Fire TV. This service is intended to be similar to YouTube but tailored for larger screens, as Musk hinted on X via the DogeDesigner account.
Musk has previously stated that X will prioritize video content, and this development indicates a move towards providing a more extensive video experience beyond the traditional feed format, according to Engadget.
Analysts express skepticism about the feasibility of Musk’s venture. Rob Enderle, president and principal analyst of the Enderle Group, pointed out that while Musk has a history of disruptive innovation with companies like Tesla and SpaceX, his management of Twitter has been problematic. “Given his track record with Twitter, the chances of successfully implementing this new video service seem slim,” Enderle noted.
Mark N. Vena, president and principal analyst with SmartTech Research, acknowledges Musk’s ambition but highlights the competitive nature of the streaming market, dominated by platforms like YouTube. “Success will depend on Musk’s ability to offer unique features and compelling content while addressing user concerns about privacy and data security,” Vena said.
Mike Horning, an associate professor of multimedia journalism at Virginia Tech, was not surprised by Musk’s announcement, noting that hiring Linda Yaccarino, a former NBCUniversal executive, suggested a strategic shift towards media and advertising.
Matthew Dolgin, a senior equity analyst with Morningstar Research Services, remains doubtful about the venture’s prospects. “Considering the challenges X has faced and the strong competition from YouTube, it’s premature to expect this new service to succeed,” Dolgin commented. He believes that both consumers and content providers may not find compelling reasons to switch from existing platforms like YouTube.
Enderle concurs that building demand for the new service could be challenging, particularly given Musk’s unconventional approach to marketing. “Musk might rely on Twitter to generate interest, but this strategy might not be effective, especially with the platform’s declining user base,” Enderle said.
Despite these challenges, Vena sees potential opportunities for Musk’s service. “As streaming continues to grow, there is a market for alternative platforms that offer niche content or improved user experiences,” Vena suggested. He also mentioned that concerns over data privacy and content moderation on existing platforms could drive interest in new options.
Neil Chase, co-founder of Brimstone Pictures, believes that Musk’s platform could appeal to content creators seeking more freedom. “Musk’s approach might attract creators looking for less regulated spaces to express their ideas,” Chase said.
Ross Rubin, principal analyst with Reticle Research, speculates that Musk might see an opportunity in YouTube’s focus on short-form content, suggesting that X could cater to creators and audiences interested in more in-depth content. However, Rubin notes that X is currently struggling with declining user and advertiser engagement, which poses a significant challenge.
Musk’s move into the TV space seems part of a broader ambition to transform X into a multifunctional platform, similar to WeChat in China. Rubin acknowledges the complexity of this goal, noting that attracting users to a comprehensive service in the U.S. presents a substantial challenge given the strong competition from established players.