YouTube is testing free television channels (TV channels) that are supported by ads and display content from certain media companies – possibly the ability to be offered free to the public in the future. This initiative comes at a time when other streaming services, such as Netflix, HBO Max, Disney Plus and Peacock, are launching cheaper or free ad-supported categories.
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Potential revenue increase through ads
YouTube recently ran a test that allows select viewers to watch free channels with ads. According to a YouTube spokesperson, this was intended as an experiment to gauge viewer interest in such a feature. The move could potentially generate even more revenue for YouTube through ads, as they seek to secure a 45% cut of ad revenue, similar to their deal with content creators on the platform.
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YouTube already has experience in providing ad-supported content, as it added free ad- supported TV shows to Google TV's live tab via Pluto TV. It seems that YouTube has gone a step further, as it is now reportedly partnering with media companies like Lionsgate and A&E Networks to provide viewers with access to various TV channels under their umbrella.
See also: YouTube: Introduces new revenue sharing program for Shorts
Unique integration with existing content offerings
While the idea isn't new, with companies like Roku and Samsung offering it for years, YouTube could set itself apart by seamlessly integrating streaming content with its current services. YouTube recently inked a multi-year deal to bring Sunday Ticket to its streaming service, YouTube TV. As a result, the millions of users who use that platform can enjoy an easy drop-in experience with their regular TV channels. YouTube TV reportedly has around 5 million users. So it's likely that the free channels will be marketed using the YouTube TV brand.
YouTube TV is a great option if you're looking for an affordable alternative to traditional cable and satellite services. With access to over 100+ channels and thousands of on-demand titles at your fingertips, it's easy to see why people are moving away from traditional cable services in favor of streaming services like YouTubeTV.
Information source: androidheadlines.com
