Google is reportedly working on launching a new collection of free, ad-supported streaming channels that would offer TV shows and movies.

Ther report claims that YouTube "is in talks with entertainment companies about featuring their shows and movies in the hub of cable-like channels and is testing the concept with a small number of media partners." The report goes on to claim that YouTube could be ready to launch the new content more broadly later this year, although plans could change between now and then.

The Wall Street Journal reports that YouTube's third-quarter 2022 advertising revenue sat at a cool $7.1 billion, a figure that the company would likely be able to significantly increase if this test was to progress to a shipping feature that more people can access.

A YouTube spokesperson confirmed to the WSJ that a test is indeed underway, saying that it's looking at ad-supported channels that are offered to a subset of viewers as a way for it to figure out what kind of demand there might be. “We’re always looking for new ways to provide viewers a central destination to more easily find, watch and share the content that matters most to them,” the spokeswoman told the WSJ.

YouTube would be far from the first company to enter the fray if it starts streaming free ad-supported TV shows and movies. Amazon's Freevee is one example of existing competition, while Tubi and Pluto TV are others that have proven popular in recent years.

As for how the financiers would shake down, the report says that "YouTube has discussed taking a cut of ad revenue from the new hub that would be similar to its traditional arrangement with content creators," adding that would see it pick up 45% of the money. 55% of ad revenue would then be handed over to the companies that provide the content, unnamed sources told the outlet.