In what seems to be a sudden move, YouTube comes back to its ad monetization strategy. The platform announced it will stream free, ad-supported TV shows. Thus, it will compete directly with a growing number of free streaming services.
Back to ad monetization
This is the first time YouTube stream a selection of free TV shoes. But this comes with the cost of ads, for users. So, Google’s platform will compete with Tubu, Pluto TV, IMDb TV, Xumo and many others.
In the beginning, the U.S. users will be granted access to more that 4,000 free TV episodes from shows. According to plans, YouTube will add about 100 more titles each week. This would mean shows and movies.
The move seems to be an expansion of the existing free streaming. Right now, YouTube hosts over 1,500 movies from big companies. Disney, Waren Bros and Paramount are among them.
The reason behind the move
The decision comes as free TV streaming is driving much of the growth in the market. Thus, Kantar says that in the US, quarterly growth comes primarily from ad-supported videos. The number of U.S. homes that at use least one free ad-supported TV service more than doubled in a year.
According to Nielsen, YouTube reached over 135 million people on connecteed TVs in the US, in December 2021. Still, TV shows were available to rent or purchase.
A new navigation banner will let users choose if they want to watch via rental, purchase or free with ads. Most of them are sold through the YouTube Select program.
Moreover, many of the TV shows are available in high-def resolution, also with surround sound audio. So, YouTube comes sticks to its data collection habits. Thus, it collects data from its users, in order to know their habbits and influence them purchase promoted products.
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