YouTube pushing efforts to introduce hub of ad-supported TV channels
What's the story
It appears that YouTube is looking for ways to saturate its platform with content from certain media companies.
According to the platform's official who spoke to the Wall Street Journal, the video streaming firm is testing a new method to introduce a hub of free/ad-supported TV streaming channels.
It's also in talks with Lionsgate and A&E, to bring movies/TV shows to the service.
Context
Why does this story matter?
YouTube already makes a sizable stream of revenue from advertisements. The addition of free/ad-supported channels will make the firm enjoy more profits.
Ad-supported channels are currently offered by businesses like Roku's Live TV, Pluto TV, and others. It would be uncharted territory for YouTube.
However, the video streaming firm could elevate the user experience by offering a variety of other content, unavailable elsewhere.
Details
YouTube may keep 45% of revenue from this upcoming concept
According to the YouTube spokesperson, "a small experiment that lets a subset of viewers watch free, ad-supported channels" is currently in progress. The concept will "gauge viewer interest," states the official.
As per the anticipations, YouTube may secure a 45% cut of the advertisement revenue from the channel hub, which will be in line with its agreement with content creators.
Progress
The firm offers services like YouTube TV and Shorts
YouTube is currently offering a separate online TV streaming service, called YouTube TV, with over hundreds of TV channels.
In addition to traditional user-made videos, last year, the platform introduced Shorts, which is the firm's short-form video feature to take on TikTok.
YouTube has also recently altered its Partner Program policy, which now includes its promise to share ad revenue with Shorts creators.
Information
It signed a multi-year deal for NFL Sunday Ticket
Over the past few years, YouTube has made lots of efforts to improve its content domain. Recently, it signed a multi-year agreement to bring NFL Sunday Ticket (a sports package to broadcast National Football League's regular games) on YouTube TV/Primetime channels from this year onward.
Scenario
The ad-supported channel hub could be available soon
YouTube's decision to integrate a hub of ad-supported TV streaming channels, could be a disruptive move, especially looking at the growing number of companies in the space, that are making profits from advertisements.
While the addition of ad-supported channels is only being tested right now, there are chances that it may soon be made available to the general public without any charges.