The experimental move is to help YouTube have a way to compete with current free or low-cost TV services.
According to the WSJ, YouTube is testing ad-free TV channels for certain media companies. This model is similar to the way of services such as Pluto TV, Roku’s Live TV channel, or the program integrated into the TV line of Samsung, LG, and Vizio – where there are “hubs” that allow users to select content. they want to see.
The form of broadcasting channels without advertising is still profitable for businesses in the field of OTT content. Some market reports show that Vizio or Roku is even more profitable from subscriptions than the hardware business. Currently, Vizio charges an annual fee of $27 per user, while a Roku subscription is $44 a year.
spokesperson A YouTube revealed to the WSJ that the unit is testing the above plan and may release it widely as soon as this year. Currently, the list of publishers is not specific, but there is certainly Lionsgate and A&E Network, channel content will include History, FYI (information), and Lifestyle.
In 2022, YouTube claims to own about 5 million subscribers on the YouTube TV service. In the market, the company is having to compete with a number of online TV services with a policy of providing content at low prices or without advertising in some channels, including big names such as Netflix, HBO Max, etc. Disney Plus or Peacock.