Monday, January 16, 2023

Report: YouTube Tests New Hub of Free Streaming Channels


YouTube is testing a new hub of free, ad-supported streaming channels, the latest in a series of moves by the company to expand its ambitions in video.

The Wall Street Journal reports the Alphabet Inc.-owned video platform is in talks with entertainment companies about featuring their shows and movies in the hub of cable-like channels and is testing the concept with a small number of media partners, according to people familiar with the discussions. It could launch the offering more broadly later this year, some of the people said.

YouTube, already a dominant player in online video, is looking to become a go-to destination across various streaming formats and genres. Adding a hub of free, ad-supported streaming TV channels—or “FAST,” as it known in the media industry—would put it in competition with players such as Roku Inc., Paramount Global‘s Pluto TV and Fox Corp.’s Tubi.


The discussions follow other YouTube streaming initiatives, including its recent creation of a marketplace allowing users to sign up for paid streaming services and its deal to pay about $2 billion a year for rights to the National Football League’s Sunday Ticket franchise.

A YouTube spokeswoman said the company is running a small experiment that lets a subset of viewers watch free, ad-supported channels and is using it to gauge viewer interest. “We’re always looking for new ways to provide viewers a central destination to more easily find, watch and share the content that matters most to them,” the spokeswoman said.

YouTube generated $7.1 billion in advertising revenue in the third quarter of last year, 13% of Google’s total ad revenue during the period. The video unit’s ad revenue dropped in the period for the first time since Alphabet started reporting its financial performance in 2020.

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