YouTube’s new ad-supported streaming service offers free TV shows, movies and channels

by Johnson Daniel

YouTube is reportedly testing a new ad-supported streaming service that will allow users to watch TV shows, movies, and channels for free. Google, YouTube’s parent company, is in discussions with entertainment companies to test the concept with a small group of people. The new service is similar to apps like Pluto TV, which provide streaming TV shows from content providers like Paramount Movies and TV Land Drama.

Companies like Vizio and Roku already sell TVs with similar streaming services, but they make more money from advertising and subscription commissions than from hardware sales. According to reports, YouTube is collaborating with Lionsgate, and A&E owns the History Channel FYI and Lifetime. Google wants 45% of the ad revenue.

YouTube recently signed a deal with the NFL Sunday Ticket, and the games will be shown on YouTube TV and YouTube Primetime Channels beginning with the 2023-2024 season. Google has approximately 5 million subscribers, and YouTube TV offers over 100 live TV channels for $64.99 per moon. The company may decide to market the free, ad-supported service as YouTube TV.

Streaming services are currently offering free or low-cost ad-supported tiers of service. Netflix Peacock Disney and HBO Max both have ad-supported tiers of service, and YouTube TV appears to be the next. The move by YouTube also indicates a shift in Google’s strategy. YouTube will be able to reach a larger audience with a free, ad-supported streaming service, particularly those who do not want to pay for a subscription.

Furthermore, the move is consistent with Google’s emphasis on advertising as the primary source of revenue, as the company seeks to diversify its revenue streams. As streaming services become more popular, more companies may look to offer free ad-supported tiers to reach a larger audience while still generating revenue through advertising.

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