Google’s (NASDAQ:GOOG) (NASDAQ:GOOGL) YouTube is reportedly working on a centralized place for free, ad-supported streaming channels as it looks to build up video offerings.
YouTube has spoken to a number of media and entertainment companies about featuring their ad-supporter channels and could launch the feature as soon as this year, The Wall Street Journal reported, citing people familiar with the matter.
The news outlet added that it could take a portion of ad revenue from the hub in a similar fashion to what it already does with content creators, receiving 45% and letting the programmers keep 55%, the news outlet added.
If YouTube were to offer a locale for the free, ad-supported, or FAST, streaming channels, it would pit it against Roku (ROKU), Fox’s (FOXA) Tubi and Paramount (PARA) (PARAA) Pluto TV.
YouTube already offers a central hub for paid streaming services, known as Primetime Channels. The video streaming service’s recent deal with the NFL will see Sunday Ticket become available on Primetime Channels, as well as its YouTube TV cable replacement.
Google (GOOG) (GOOGL) did not immediately respond to a request for comment from Seeking Alpha.
Last week, investment firm Tigress Financial reiterated its strong buy rating on Alphabet (GOOG) (GOOGL), citing the tech giant’s strength in cloud computing and search.