With its most recent endeavor, YouTube may start to lean more toward the tv side of streaming.
The Wall Street Journal has learned that YouTube has started discussions with entertainment businesses in an effort to include their television episodes and feature films together in a new free channel hub. According to the Journal, which obtained the information from sources close to the matter, YouTube may plan to introduce this new center at some time later in 2023.
According to data obtained through S&P Global Market Intelligence there already exist over 20 free, ad-supported platforms. A lot of people are likely used to watching Roku Channels on the Roku device or on other platforms like Pluto TV and Tubi. Viewers (and platforms) alike actively seek out the free channel market, which reached $4 billion in 2022, according to data, and is expected to reach $9 billion by 2026, according to experts.
Given that YouTube is starting to express interest in entering this streaming market, the streaming service has apparently talked about taking 45% part of the profits generated by this new hub. In keeping with how YouTube deals with the company’s own content creators that produce videos, this would result in 55% of the money going to the content providers.
According to sources with direct knowledge of the situation, YouTube launched a free channel hub in partnership between A&E Network, Lions Gate Media, Cinedigm Corp., and FilmRise.
Even if YouTube’s revenue dropped in the third quarter of 2022, when it only brought in around $7 billion in its advertisements, the site is certainly open to exploring new options where it may offer things for free while also providing commercials to users.
$GOOG results are a disappointment but not terrible. FX was a 5% headwind but they hedged most of that so its not an excuse for the miss.
— Gene Munster (@munster_gene) October 25, 2022
YouTube began distributing its “Primetime” Channels to American users back in November. This introduced a single practical hub where consumers could handle every one of their subscriptions and view platforms like SHOWTIME and Paramount+ together. The platform then unveiled its exclusive agreement alongside NFL Sunday Ticket in December, which will come into place for the 2023 Football season.
Perhaps this center of free channels will be a refreshing change of pace in a world where so many hands are reaching out to grab the money and attention of customers.