YouTube is reportedly testing a new ad-supported streaming service that will allow users to stream TV shows, movies and channels for free. Google, the parent company of YouTube, is in talks with entertainment companies to test the concept. with few people. The new service is similar to apps like Pluto TV, which offers streaming TV shows from content providers like Paramount Movies and TV Land Drama.

Companies like Vizio and Roku already sell TVs that offer similar streaming services, but they earn more from advertising and subscription commissions than they do from selling hardware. YouTube is reportedly working with Lionsgate and A&E owns the History Channel FYI and Lifetime. Google demands a 45% cut of the ad revenue.

YouTube recently signed a deal with the NFL Sunday Ticket, and starting with the 2023-2024 season, the games will be shown on YouTube TV and YouTube Primetime Channels. Google currently has about 5 million subscribers, and YouTube TV offers more than 100 live TV channels for $64.99 each moon. Company may decide to market the free, ad-supported service under the YouTube TV brand.

The current trend in streaming services is to offer free or low-cost ad-supported tiers of service. Netflix Peacock Disney and HBO Max both have ad-supported tiers of service, and it looks like YouTube TV will be next. YouTube’s move also signals a shift in Google’s strategy. With a free, ad-supported streaming service, YouTube will be able to reach a wider audience, especially those who don’t want to pay for a subscription.

Additionally, the move fits with Google’s focus on advertising as the main source of revenue, as the company looks to diversify its revenue streams. As streaming services grow in popularity, more and more companies may look to offer free ad-supported tiers because It allows them to reach a wider audience while still generating revenue through advertising.

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