YouTube is experimenting with free TV channels that are ad-supported and carry programming from specific media firms.
With a “hub” that lets viewers choose what to watch, the idea is comparable to services like Pluto TV, Roku’s Live TV channels, or the experiences integrated into TVs from brands like Samsung, LG, and Vizio.
Other businesses in this industry have found success with this idea since, according to earnings reports from Vizio and Roku, they make more money from advertising and subscription commissions than they do from selling hardware. According to recent figures, Roku generates more than $44 annually, while Vizio earns an average of $27 per subscriber.
The Wall Street Journal said that an unnamed YouTube representative had verified the tests, and that the function might become more freely accessible later this year. According to reports, YouTube is collaborating with organisations like Lionsgate and A&E, the latter of which is the proprietor of networks including History, FYI, and Lifetime.
In the past, YouTube has offered premium content that is ad-supported. It began adding free television programmes backed by advertisements to its library in 2022, and it had previously been doing the same with movies for a while. The business, through Pluto TV, also provided free channels to its Google TV live page the prior year.
A subscription service called YouTube TV also exists, allowing viewers to watch content in a manner akin to that of traditional television stations. Around 5 million users signed up for YouTube TV last summer, according to YouTube.
It’s probable that YouTube TV will be used to promote the free channels. These testing take place as other streaming providers, such Netflix, HBO Max, Disney Plus, or Peacock, introduce reduced or free ad-supported packages.