USA: It looks like YouTube is trying to find new ways to fill its platform with content produced by specialized media companies. A platform representative who spoke to The Wall Street Journal claimed that the video streaming company is testing a new strategy to launch a hub of free/ad-supported TV streaming channels.
Additionally, it is in discussions with Lionsgate and A&E to add movies and TV shows to the service. YouTube already makes a substantial amount of money from advertisements. The company will generate more revenue by adding free/ad supported channels.
Currently, companies such as Roku's Live TV, Pluto TV, and others offer ad-supported channels. For YouTube, this will be uncharted territory. A video streaming company can improve the user experience by providing a variety of additional, exclusive content.
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A YouTube spokesperson said that it is currently "a small experiment that lets a subset of viewers watch free, ad-supported channels." According to the representative, the idea would "gauge audience interest". According to predictions, YouTube may receive a 45% cut of Channel Hub's advertising revenue, as per the terms of its contracts with content creators.
Currently, YouTube TV, a separate online TV streaming service with hundreds of TV channels is available. Along with general user-generated content, the platform introduced Shorts last year, the company's attempt to compete with TikTok with a short-form video feature.
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Additionally, YouTube recently changed the terms of its Partner Program, which includes an assurance that it will share ad revenue with Shorts creators.
YouTube has worked hard to expand its content offering over the past few years. It recently signed a multi-year deal to begin airing NFL Sunday Ticket (a sports package airing National Football League regular-season games) on YouTube TV/primetime channels this year.
YouTube's decision to include a hub of ad-supported TV streaming channels could prove disruptive, given the growing number of businesses that benefit from ads.
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Although the inclusion of ad-supported channels is currently being tested, it is likely that they may soon be made freely available to all.