YouTube is testing new content on its platform with a hub of ad-supported TV streaming channels. The company is actively working with various companies in order to bring TV shows and movies to the platform. While it is currently just being trialed, there is the possibility that it could be offered to the public for free at a later date.
A YouTube spokesperson corroborated the report with The Wall Street Journal, stating that “a small experiment that lets a subset of viewers watch free, ad-supported channels” is currently in progress and that it is “using it to gauge viewer interest.” The addition of free and ad-supported channels could be a big one, adding to the already large amount of revenue that the platform generates from ads.
Similar to its agreement with content creators on its platform, YouTube is seeking to collect a 45 per cent cut of the ad revenue while talks are still in progress. Despite the fact that this would be an uncharted area for YouTube, businesses like Roku, Samsung, and others have long provided free, ad-supported TV channels through their own platforms. The ability for YouTube to seamlessly provide consumers with simple access to a range of other material on its platform might differentiate the user experience.
The recent multi-year agreement that was signed to provide NFL Sunday Ticket on YouTube TV and YouTube Primetime Channels starting in 2023 is just one example of the extensive work that YouTube has done in recent years to enhance its content.
Additionally, the company has grown by introducing YouTube TV, a distinct online TV streaming service that offers over a hundred TV channels much like your local cable or satellite provider. The platform has expanded to include short-form user-created videos in addition to more traditional user-generated content.
It launched Shorts last year in an effort to take on TikTok, and it appears to be succeeding. As YouTube has begun the process of sharing ad revenue with Shorts producers by altering the conditions of its YouTube Partner Program, this year might be even better. This might be a significant step over the coming year that puts TikTok and its neck and neck. Things might get hotter for YouTube in 2023 if it is successful in integrating free ad-supported channels into its platform.
