A hub of ad-supported channels on YouTube is apparently in talks with media corporations to include their TV episodes and movies. The concept of evaluating audience interest is already being tested.
The Wall Street Journal reports that YouTube is in discussions with several media businesses about including their programs and films in a hub of cable-style channels. The free, ad-supported portal is already being tested by the corporation with a select group of media partners. Later this year, the hub might be implemented more widely, according to the newspaper.
If YouTube goes ahead with the proposal, it would enter a market called Free Ad-Supported Streaming Television, or FAST, in the industry.
Roku, Fox’s Tubi, and Pluto TV, which is owned by Paramount Global, are competitors in that market (formerly ViacomCBS). Depending on the type of content it provides and how the proposed channels are configured, YouTube may end up detracting more attention from those services.
YouTube acknowledged executing a test in which a small number of viewers can access ad-supported channels to the Journal. A spokeswoman stated, “We’re continually exploring innovative approaches to give viewers a central location to more quickly find, watch, and share the material that means most to them.
For the trial, the service is believed to have partnered with companies like Lionsgate, A+E Networks, and FilmRise. These channels give media firms a means to monetize content that might otherwise go unused.
Although YouTube currently has movies with ads, a new hub may provide users with a wider selection of free movies and television shows. Its channels might function in a manner akin to Pluto TV. On that platform, there are channels for reality shows, live news, sports, and reruns of certain shows like CSI, Doctor Who, South Park, and Frasier.
The rumored foray into FAST is in line with YouTube’s ambition to diversify its offering of video content beyond what is often associated with the platform. It moved premium streaming channels from YouTube TV to its main app in November. Among the earliest Primetime Channels were Showtime, Starz, Paramount+, and AMC+. In a multi-billion dollar agreement that is rumored to last for seven years, YouTube has secured exclusive rights to the NFL Sunday Ticket package.
According to Nielsen, YouTube already has the largest percentage of TV viewing time among US streaming providers. With 8.8% of the viewing time in November, it defeated Netflix for the third consecutive month. It might capture greater mindshare and viewer attention with the help of programs like the Sunday Ticket and FAST networks.
