According to Wall Street Journal, YouTube is developing free ad-supported TV channels that feature content from certain media businesses. There will be a “hub” where you can choose what to watch, which is akin to services like Roku’s Live TV channels, Pluto TV, or the services integrated into TVs from brands such as LG, Vizio, and Samsung.
According to financial reports from Roku and Vizio, who generate more money from advertising and subscription commissions than they do by selling hardware, the concept has been a component of a successful business strategy for some of the other firms operating in the sector. According to the most recent statistics, Vizio earns an average of $27 per user per year, whereas Roku earns an average of $44 per user yearly.
The testing was verified by an unidentified YouTube spokesperson to the Journal, and according to the story, the function may become more widespread this year. The company is apparently collaborating with Lionsgate and A&E, the latter of which is the proprietor of channels such as Lifetime, FYI, and History.
In 2022, YouTube added free TV programs that were funded by commercials to its archive, demonstrating its experience with offering premium ad-supported content. It has been doing the exact same thing with films for a long time. With Pluto TV, the company last year launched channels for free on its Google TV live page.
A similar drop-in-and-watch experience to traditional TV networks is provided by the subscription model YouTube TV. According to a July announcement from YouTube, five million people have joined YouTube TV. The possibility exists that the YouTube TV name will be utilized to advertise the free channels.
The testing takes place at a time when several other streaming services, such as HBO Max, Peacock, Disney Plus, or Netflix, are launching more affordable or free ad-supported plans.
