What you need to know
- YouTube has begun testing its new free, ad-supported channel hub with entertainment providers.
- Reportedly, those closest to the matter estimate that the launch of this hub could be in late 2023.
- YouTube will enter the saturated free ad-supported channel market, bringing in $4 billion in 2022 and projected to reach $9 billion by 2026.
YouTube may start leaning more towards the TV side of streaming with its latest project.
According to The Wall Street Journal, YouTube has begun talks with entertainment companies to feature shows and movies on its new free channel hub. The information comes from people close to the subject, who the journal says YouTube may be looking to launch this new hub at some point in his late 2023.
According to information obtained from S&P Global Market Intelligence, there are currently over 20 free, ad-supported platforms. Many viewers will be familiar with Roku channels on Roku devices and other platforms such as Tubi and Pluto TV. The free channel market is widely sought after by viewers (and platforms) and data shows it will be a $4 billion market by 2022, with experts predicting he will reach $9 billion by 2026. I’m assuming it’s possible.
Seeing YouTube start to show interest in joining the streaming area, the streaming platform is said to have discussed taking 45% of the revenue it makes from this new hub. This gives 55% of the revenue to the content provider. This is similar to how YouTube works with its own content he creators who create videos.
Additionally, the person closest to the matter also said that YouTube has launched this free channel hub alongside A&E Networks, Lions Gate Entertainment, Cinedigm Corp and FilmRise.
YouTube’s revenue declined in the third quarter of 2022, with only $7 billion in revenue from advertising, but it’s possible the platform could bring something for free while serving ads to viewers. Another path is probably the one you’re willing to take.
Back in November, YouTube began rolling out its Primetime channel to US consumers. This gives him one convenient hub where users can watch his SHOWTIME, STARZ, Paramount+ and other platforms in one place and manage all their subscriptions. Then, in December, the platform introduced his exclusive deal with the NFL Sunday Ticket, effective from his 2023 NFL season.
With so many different hands emerging to capture consumer money and attention, perhaps this free channel hub could be a breath of fresh air.
