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32
14 Jan, 2023
1 min time to read

The addition of this feature could enhance the company's competitiveness against other streaming services that are either free or low-cost.

According to a report from The Wall Street Journal, YouTube is experimenting with offering free, ad-supported TV channels that feature content from select media companies. The idea is similar to services like Pluto TV, Roku's Live TV channels, or the built-in experiences on TVs from companies like Samsung, LG, and Vizio. Users will be able to choose from a selection of channels to watch.

This model has proven to be profitable for other companies in this space, as demonstrated by the earnings reports from Vizio and Roku, which show that they generate more revenue from advertising and subscription commissions than from hardware sales. Vizio reportedly earns an average of $27 per user per year, while Roku earns over $44 per user per year.

ccording to the Journal, YouTube is testing a new feature that would offer free, ad-supported television shows to its users. The feature is being tested in partnership with companies like Lionsgate and A&E, and could be rolled out more widely later this year. YouTube has prior experience with providing premium ad-supported content, as it added free television shows supported by ads to its catalog in 2022, and had already been doing the same with movies for years.

Additionally, last year, the company added free channels to its Google TV live tab via Pluto TV. YouTube also offers the paid service, YouTube TV, which allows users to access standard television channels. The introduction of free ad-supported tiers is a trend among streaming services, with companies like Netflix, HBO Max, Disney Plus, and Peacock also offering similar options.