Twitter rivals, unicorn trivia and valuation homework

Welcome back toEquity, the podcast about the business of startups, where we unpack the numbers and nuance behind the headlines. It’s Tuesday, not Monday, but hey, the week ahead is as busy as ever.

Here’s what I chatted about today:

Big tech: Good news for Bitcoin and Ethereum, even as late-stage companies in the space cut to stay afloat.
Big idea: I had two ones to get through. First, Africa had no new unicorns last year, despite record fundraising raising. What’s that all about? Second, I want to talk about Stripe’s internal valuation cut, yet again, and what that news means on the outside.
Big innovation: I talk about yet another Clearco executive shake up and yet another Clearco round of layoffs, as well as the energy for the fintech moving forward. We end with a look at freshly-backed T2, which is opening up its game plan in a spreadsheet format. We love to see a Twitter rival, love even more to see one utilize the beauty of read-only spreadsheet features

As always, you can support me by following me on Twitter and Instagram.The show also tweets from @equitypod, so follow us there and turn on notifications to never miss a new update from your favorite podcast team in tech (ugh, you shouldn’t have).

Equity drops at 10:00 a.m. PT every Monday and at 7:00 a.m. PT on Wednesdays and Fridays, so subscribe to us onApple Podcasts,Overcast,Spotifyandall the casts. TechCrunch also has agreat show on crypto, ashow that interviews founders, one thatdetails how our stories come together, and more!

Twitter rivals, unicorn trivia and valuation homework by Natasha Mascarenhas originally published on TechCrunch

UK privacy watchdog silent as Google flicks off critique its Topics API fails to reform ad-tracking

Late last week it emerged Google intends to ignore a call by the World Wide Web Consortium (W3C) — the international body that works to guide the development of web standards — to rethink the Topics API: A key ad-targeting component of Google’s so-called “Privacy Sandbox” proposal to evolve the adtech stack Chrome supports for targeted advertising.

Topics refers to an ad-targeting component of the Sandbox proposal which is based on tracking web users interests via their browser.

The W3C Technical Architecture Group (TAG) raised a series of concerns following a request from Google last March for an “early design review” of the Topics API — writing last week that its “initial view” is Google’s proposed Topics API fails to protect users from “unwanted tracking and profiling” and maintains the status quo of “inappropriate surveillance on the web”.

“We do not want to see it proceed further,” added Amy Guy, commenting on behalf of the TAG.

The TAG’s take is not the first downbeat assessment of Topics. Browser engine developers WebKit and Mozilla also both recently gave a thumbs-down to Google’s approach — with the former warning against pre-existing privacy deficiencies on the web being used as “excuses for privacy deficiencies in new specs and proposals”; and the latter deeming Topics “more likely to reduce the usefulness of the information for advertisers than it provides meaningful protection for privacy”.

And the risk of the web user experience fragmenting if there’s only limited support among browsers for Topics — which could lead to implementing sites seeking to block visitors who are using non-Chromium browsers — is another of the concerns flagged by the TAG.

Despite deepening opposition from the world of web infrastructure to Google’s approach, the UK’s privacy watchdog — a key oversight body in this context as the Information Commission’s Office (ICO) it’s actively engaged in assessing the Sandbox’s compliance with data protection law following a major antitrust intervention by the UK’s Competition and Markets Authority (CMA) which it joined — appears content to stand by and let Google proceed with a proposal that technical experts at the W3C are warning risks perpetuating the kind of privacy intrusions (and user agency and transparency failures) that have mired the adtech industry in regulatory (and reputational) hot water for years.

Asked whether it has any concerns about Topics’ implications for privacy, including in light of the TAG’s assessment, the ICO took several days to consider the question before declining comment.

The regulator did tell us it is continuing to engage with Google and with the CMA — as part of its role under commitments made by Google last year to the competition watchdog. The ICO’s spokesperson also pointed back to an 2021 opinion, published by the prior UK information commissioner on the topic (ha!) of evolving online advertising — which set out a series of “principles” and “recommendations” for the adtech industry, including stipulating that users are provided with an option to receive ads without any tracking, profiling or processing of personal data — and which the spokesperson said lays out its “general expectations” in relation to such proposals now.

But more fulsome response from the ICO to a detailed critique of Topics by the W3C TAG there was none.

A Google spokesman, meanwhile, confirmed it has briefed the regulator on Topics. And responding to questions about the TAG’s concerns the company also told us:

While we appreciate the input of TAG, we disagree with their characterization that Topics maintains the status quo. Google is committed to Topics, as it is a significant privacy improvement over third-party cookies, and we’re moving forward.

Topics supports interest-based ads that keep the web free & open, and significantly improves privacy compared to third-party cookies. Removing third-party cookies without viable alternatives hurts publishers, and can lead to worse approaches like covert tracking. Many companies are actively testing Topics and Sandbox APIs, and we’re committed to providing the tools to advance privacy and support the web.

Additionally, Google’s senior director of product management, Victor Wong, took to Twitter Friday — following press reporting on the implications of the TAG’s concerns — to tweet a threaded version of sentiments in the statement (in which Wong also claims users can “easily control what topics are shared or turn it off”) — ending with the stipulation that the adtech giant is “100% committed to these APIs as building blocks for a more private internet”.

So, tl;dr, Google’s not for turning on Topics.

It announced this component of Sandbox a year ago — replacing a much criticized earlier interest-based ad-targeting proposal, called FLoCs (aka Federated Learning of Cohorts), which had proposed grouping users with comparable interests into targetable buckets.

FLoCs was soon attacked as a terrible idea — with critics arguing it could amplify existing adtech problems like discrimination and predatory targeting. So Google may not have had much of a choice in killing off FLoCs — but doing so provided it with a way to turn a PR headache over its claimed pro-privacy ads evolution project into a quick win by making the company appear responsive.

Thing is, the fast-stacking up critiques of Topics don’t look good for Google’s claims of “advanced” adtech delivering a “more private internet” either.

Under the Topics proposal, Chrome (or a chromium-based browser) tracks the users’ web activity and assigns interests to them based on what they look at online which can then be shared with entities that call the Topics API in order to target them with ads.

There are some limits — such as on how many topics can be assigned, how many are shared, how long Topics are stored etc — but, fundamentally, the proposal entails the user’s web activity being watched by their browser which then shares snippets of the taxonomy of interests it’s inferred with sites that ask for the data.

100% clear to (and controllable by) the web user this is not, as the TAG’s assessment argues:

The Topics API as proposed puts the browser in a position of sharing information about the user, derived from their browsing history, with any site that can call the API. This is done in such a way that the user has no fine-grained control over what is revealed, and in what context, or to which parties. It also seems likely that a user would struggle to understand what is even happening; data is gathered and sent behind the scenes, quite opaquely. This goes against the principle ofenhancing the user’s control, and we believe is not appropriate behaviour for any software purporting to be an agent of a web user.

Giving the web user access to browser settings to configure which topics can be observed and sent, and from/to which parties, would be a necessary addition to an API such as this, and go some way towards restoring agency of the user, but is by no means sufficient. People can become vulnerable in ways they do not expect, and without notice. People cannot be expected to have a full understanding of every possible topic in the taxonomy as it relates to their personal circumstances, nor of the immediate or knock-on effects of sharing this data with sites and advertisers, and nor can they be expected to continually revise their browser settings as their personal or global circumstances change.

There is also the risk of sites that call the API being able to ‘enrich’ the per-user interest data gathered by Topics by using other forms of tracking — such as device fingerprinting — and thereby strip away at web users’ privacy in the same corrosive, anti-web-user way that tracking and profiling always does.

And while Google has said “sensitive” categories — such as race or gender — can’t be turned into targetable interests via the Topics processing that does not stop advertisers identifying proxy categories they could use to target protected characteristics as has happened using existing tracking-based ad targeting tools (see, for eg, “ethnic affinity” ad-targeting on Facebook — which led to warnings back in 2016 of the potential for discriminatory ads excluding people with protected characteristics from seeing job or housing ads).

(Again the TAG picks up on that risk — further pointing out: “[T]here is no binary assessment that can be made over whether a topic is ‘sensitive’ or not. This can vary depending on context, the circumstances of the person it relates to, as well as change over time for the same person.”)

A cynic might say the controversy over FLoCs, and Google’s fairly swift ditching of it, provided the company with useful cover to push Topics as a more palatable replacement — without attracting the same level of fine-grained scrutiny to a proposal that, after all, seeks to keep tracking web users — given all the attention already expended on FLoCs (and with some regulatory powder spent on antitrust Privacy Sandbox considerations).

As with a negotiation, the first ask may be outrageous — not because the expectation is to get everything on the list but as a way to skew expectations and get as much as possible later on.

Google’s highly technical plan to build a new (and it claims) ‘better-for-privacy’ adtech stack was formally announced back in 2020 — when it set out its strategy to deprecate support for third party tracking cookies in Chrome, having been dragged into action by far earlier anti-tracking moves by rival browsers. But the proposal has faced considerable criticizm from publishers and marketers over concerns it will further entrench Google’s dominance of online advertising. That — in turn — has attracted a bunch of regulatory scrutiny and friction from antitrust watchdogs, leading to some delays to the original migration timeline.

The UK has led the charge here, with its CMA extracting a series of commitments from the tech giant just under a year ago — over how it would develop the replacement adtech stack and when it could apply any switch.

Principally these commitments are around ensuring Google took feedback from the industry to address any competition concerns. But the CMA and ICO also announced joint working on this oversight — given the clear implications for web users’ privacy of any change to how ad targeting is done. Which means competition and privacy regulators need to work hand-in-glove here if the web user is not to keep being stiffed in the name of ‘relevant ads’.

The issue of adtech for the ICO is, however, an awkward one.

This is because it has — historically — failed to take enforcement action against current-gen adtech’s systematic breaches of privacy law. So the notion of the ICO hard-balling Google now, over what the company has, from the outset, branded as a pro-privacy advancement on the dirty status quo, even as the regulator lets privacy-ripping adtech carry on unlawfully processing web users’ data — might look a bit ‘arse over tit’, so to speak.

The upshot is the ICO is in a bind over how proactively it can regulate the detail of Google’s Sandbox proposal. And that of course plays into Google’s hand — since the sole privacy regulator with eyes actively on this stuff is forced to sit on its hands (or at best twiddle its thumbs) and let Google shape the narrative for Topics and ignore informed critiques — so you could say Google is rubbing the regulator’s face in its own inaction. Hence unwavering talk of “moving forward” on a “significant privacy improvement over third-party cookies”.

“Improvement” is of course relative. So, for users, the reality is it’s still Google in the driving seat when it comes to deciding how much of an incremental privacy gain you’ll get on its people-tracking business as usual. And there’s no point in complaining to the ICO about that.

UK privacy watchdog silent as Google flicks off critique its Topics API fails to reform ad-tracking by Natasha Lomas originally published on TechCrunch

Delphia co-founder placed on leave after sexual assault allegations from former employee

Delphia, a mobile investment platform, is facing a lawsuit and allegations that its co-founder and CTO Cameron Agius-Westland sexually assaulted and harassed a former employee, according to a complaint filed on Monday and shared exclusively with TechCrunch.

The complaint alleges that on August 17, 2022, Westland “sexually assaulted and harassed Plaintiff for at least 30 minutes, as he rubbed her back and legs in a hot tub in a sexual manner during a work retreat.” The complaint was filed in both the U.S. and Canada.

“Later in the night, Westland whispered in Plaintiff’s ear – ‘what do you say, we should do this, you and I, let’s do this.’ Plaintiff acted like she did not understand or hear him,” the document alleged. “Then at her first opportunity, Plaintiff told everyone she was going to bed, went into her room, and locked the door.” In the complaint, the former employee also alleges that she later received a text from Westland asking “Want to cuddle,” to which she says she did not respond.

The following day, Westland is said in the complaint to have at least partly acknowledged his behavior by sending the Plaintiff and two other colleagues the following message, as shared in a screenshot in the document:

After the alleged incident, the Plaintiff was fired in mid-November 2022, after Westland wanted to “change company strategy,” according to the document. She was replaced shortly after by what the former employee’s complaint characterizes as Westland’s “close friend,” Max Cameron, who is now director of community products at Delphia.

Andrew Peek, CEO and co-founder of Delphia, shared a statement with TechCrunch in response to the lawsuit allegations:

Delphia takes the allegations of sexual misconduct against Mr. Westland very seriously. Delphia has always held itself to the highest standards and, accordingly, we have retained an independent third-party investigator to look into these allegations. Mr. Westland has been placed on a leave of absence pending the investigation. That said, Delphia denies the allegations that the plaintiff in this litigation was terminated for any reason other than the fact that her services were no longer needed. In addition, the person identified as Mr. Westland’s “close friend” works in an entirely different part of the organization and did not take over the plaintiff’s responsibilities.

Delphia closed a $60 million Series A led by Multicoin Capital in June 2022. Other investors in the round include fintech-focused Ribbit Capital, M13, Lattice Ventures and the now-defunct FTX Ventures. In December 2022, Delphia announced its acquisition of Fathom Privacy, a data rights company that aims to provide individuals the ability to own personal application data.

Delphia co-founder placed on leave after sexual assault allegations from former employee by Jacquelyn Melinek originally published on TechCrunch

HBO’s ‘The Last of Us’ gets a warm welcome with 4.7M U.S. viewers

The Last of Us” made its debut last night on HBO and HBO Max. The series premiere garnered 4.7 million U.S. viewers, making it HBO’s second-largest debut since “Boardwalk Empire” premiered over a decade ago with 4.81 million viewers, the company announced today. “House of the Dragon” remains the biggest premiere in HBO history with nearly 10 million viewers.

The video game adaptation was a recipe for success given the established fan base, a star-studded cast, and an accurate representation of the franchise that many gamers loved to see come to life. While it’s too early to predict if “The Last of Us” will become the most popular game-based TV series, the viewership data is a sure sign that HBO is doing something right. Notably, “The Last of Us” is the company’s first time adapting a video game into a show.

“We are thrilled to see fans of the series and game alike experience this iconic story in a new way, and we extend our gratitude to them for helping to make it a success,” said Casey Bloys, Chairman and CEO of HBO & HBO Max Content, in a statement.

We’ll also add that the premiere caused a 69% increase in first-time U.S. downloads of the HBO Max app across iOS and Android devices, per third-party app intelligence estimates from data.ai (previously App Annie). Plus, the HBO Max app reached #4 on the overall free iPhone app ranking on the U.S. App Store on the night of the premiere. The last time it was this high in the ranking was when it hit #3 on the list when “House of the Dragon” debuted in August 2022.

However, “The Last of Us” has big shoes to fill if it wants to compete with other game-based shows like Netflix’s “Arcane,” which is based on “League of Legends.” Based on Netflix’s own metrics, “Arcane” had 38.4 million viewing hours during the week of November 15, 2021. Paramount+’s “Halo” set a record for being the streamer’s most-watched series premiere worldwide. Amazon Prime Video also has video game adaptations in the works, including a “God of War” series.

The HBO original series will have nine episodes in total and will stream on Sundays.

HBO Max subscribers were only introduced to a few characters in the first episode, so it’s likely the following episodes will feature more, such as Frank (Murray Bartlett), Bill (Nick Offerman), Kathleen (Melanie Lynskey), Florence (Elaine Miles), Riley (Storm Reid), Perry (Jeffrey Pierce) and Henry (Lamar Johnson). Viewers will also finally get to see clickers in action.

HBO’s ‘The Last of Us’ gets a warm welcome with 4.7M U.S. viewers by Lauren Forristal originally published on TechCrunch

Clearco co-founder Michele Romanow steps down, cuts 30% of staff

In pursuit of profits, Clearco co-founder Michele Romanow has stepped down as chief executive of the company around a year after assuming the official role. The shift comes alongside yet another round of layoffs, this time impacting 30% of staff across all teams, Romanow confirms.

Now, Clearco only has 140 staff, down from 500 just last year. “We don’t ever lie, we are under the same pressures as every other company to become a profitable business. And so we’ve just continued to make the hard decisions..and continue to be ahead of the curve,” Romanow said in an interview with TechCrunch, explaining the shift.

There’s in-house precedent for both of these changes. Clearco has undergone numerous rounds of layoffs over the pandemic, including a cut that impacted 25% of staff. Additionally, in 2022, Toronto-based fintech saw its other co-founder, Andrew D’Souza, step down from his CEO role, to be replaced by Romanow. Now, both the co-founders will assume executive chairman positions.

With its co-founding team gone, and yet another round of layoffs, Clearco has a, well, clear challenge ahead of it: how does it turn things around, and ultimately defend its $2 billion valuation?

For now, Romanow tells TechCrunch, the answer is discipline. And Andrew Curtis, who will take over the chief executive role at Clearco after spending two decades of his career in the financial services world.

Curtis, who is CEO effective today, said in an interview with TechCrunch that “the whole reason I’m here is to push the company toward profitability and cash flow break-even.”

While Romanow denied any potential of her perhaps starting a new company given today’s change, she did confirm one detail: the entrepreneur will continue to be on Dragon’s Den, a spin off of Shark Tank, despite the current kerfuffle.

“This is not about me having an ego and needing a certain role,” Romanow said. “I’m a growth CEO, and now we need a CEO that is very financially-driven, and is going to get us to the next period of break-even business.”

Clearco co-founder Michele Romanow steps down, cuts 30% of staff by Natasha Mascarenhas originally published on TechCrunch

TechCrunch+ roundup: Space tech predictions, startup IP strategy, finding feasible funding

I once aspired to own San Francisco real estate. Now, I’m only interested in acquiring intellectual property.

Case in point: “Scooby-Doo” aired on TV before I was born, but the spin-off “Velma” just premiered on HBO Max.

It’s getting ripped to shreds on social media, which means people watched, so we can expect more to come.

Full TechCrunch+ articles are only available to members
Use discount code TCPLUSROUNDUP to save 20% off a one- or two-year subscription

Hollywood studios are adept at wringing every ounce of value from their IP. Similarly, cost-effective IP management strategies can fortify startup valuations over the long-term, according to Kyle Graves, counsel at Snell & Wilmer, but only if founders are vigilant.

Do you have IP counsel? Does your app have a UX protection strategy? Have you ever conducted an audit?

“There are a thousand little oopsies that can become big oopsies when word gets out that a big payday may be coming.”

Thanks for reading,

Walter Thompson
Editorial Manager, TechCrunch+
@yourprotagonist

7 space tech predictions for 2023

Image Credits: Orlando Sentinel (opens in a new window) / Getty Images

As of January 17, Wikipedia notes that there have been eight successful spaceflight launches so far this year.

New spaceports are entering operation, cell phone users will soon have connectivity from space, and the Artemis program backed by NASA is one of several ventures that will bring robots (and eventually human crews) to the Moon.

“Despite the economic uncertainty, we believe new records will be established in spacetech as giant commercial projects get funded,” says Mark Boggett, CEO and co-founder of Seraphim Space Manager LLP.

4 tips to find the funding that fits your business

Image Credits: Getty Images

Raising money without a detailed business plan is a proven way for losing value.

Before seeking capital, founders need a firm plan for ramping up hiring, going to market and expanding into new areas. Otherwise, they may be “mistaking funding for validation,” writes Carlos Antequera, CEO and co-founder of Novel Capital.

“Not all capital providers are equal, so seeking financing isn’t just about securing capital. It’s a matter of finding the right source of funding that matches both your business and your roadmap.”

TechCrunch+ roundup: Space tech predictions, startup IP strategy, finding feasible funding by Walter Thompson originally published on TechCrunch

Fledgling startup founders — buy an early-bird ticket to build your future

The early stages of building a startup is no cakewalk even during a strong economy — much less during the uncertain one we’re currently living in. If you’re an aspiring or newly minted founder, you’ll find invaluable information, guidance and support — at an early-bird price you can afford — during TechCrunch Early Stage, a one-day founder summit on April 20 in Boston, Massachusetts.

Early Bird Pricing On Sale Now

Buy an early-bird founder ticket for $249 and tap into a day packed with:

Workshops led by leading founders and VCs.
Small roundtable discussions with Q&A led by top subject-matter experts.
Actionable advice and strategies you can implement now.
Opportunities to expand your network and connect with a supportive community.

What You Can Learn at TechCrunch Early Stage

We’re building out a strong agenda, and we’ll share it with you in the coming weeks. In the meantime, these categories and topics — from previous years — will give you a sense of what you can expect at TC Early Stage 2023.

Funding: How to Get Your First Yes
Marketing/PR: How to Get Earned Media
Operations: Finding Your Product Market Fit

Don’t let an uncertain economy sideline your startup dreams. Learn directly from founders who have paved the way. They, and a host of other startup ecosystem experts, will help you understand best practices, avoid pitfalls, determine your next steps and immerse yourself in a supportive community of fellow travelers.

TechCrunch Early Stage takes place on April 20, 2023, in Boston, Massachusetts. Jump in and save with early-bird pricing. Buy your early-bird ticket for $249 and save $200. We can’t wait to see what you’re building!

Is your company interested in sponsoring or exhibiting at TC Early Stage 2023? Contact our sponsorship sales team byfilling out this form.

Fledgling startup founders — buy an early-bird ticket to build your future by Lauren Simonds originally published on TechCrunch

Netflix refreshes its iPhone app with a more fluid design

It’s not just quality content that makes a streaming service stand out amongst its competitors. Improving the user experience is still an integral part of the fight to reduce churn. On Monday, Netflix rolled out updates to its iPhone app that introduced a revamped interface featuring a new billboard layout, new card transitions, new animation for both the launch and profile screens, updated haptics and more.

Former Netflix product designer Janum Trivedi tweeted about the update alongside a video that shows the new version of the app. Trivedi wanted the app to “feel more fluid, delightful, and polished,” he wrote.

This last year, I’ve been leading a UI refresh to make Netflix feel more fluid, delightful, and polished.

Today, all that work shipped!

Huge thanks to @nebson and @b3ll for helping bring this to life

Details below, but try it out yourself! pic.twitter.com/cZFb7c42Fd

— Janum Trivedi (@jmtrivedi) January 16, 2023

When iPhone users open the Netflix app, they’ll see a large card of a movie or TV series taking up most of the screen. This billboard layout is done to promote a suggested title that’s available on the streaming service. What’s interesting about the update is that the card now uses the parallax effect, which is when the wallpaper moves or shifts slightly when a iPhone user tilts the device back and forth. Also, the title cards are now surrounded by a colored border, which is the main color in the movie/TV artwork.

It also appears that the “Info” tab at the bottom of the card has been removed. Instead, users can simply click on the card, which will bring them to a separate page with information about the show or film.

Previously, the card transition was less fluid on the app. When a title was selected, the info section would simply slide up. The new card transition shows the card grow bigger and then the information opens into a full-screen version.

Another interesting update is the profile screen animation. Rather than the classic side-sliding action that occurred when a user switched profiles in the old app, users will see the profile icon grow large as it jumps to the center, then shrink to its normal size and bounce to the top right corner of the page.

Netflix subscribers will likely enjoy the iPhone app refresh as navigation feels more fun and interactive.

Netflix refreshes its iPhone app with a more fluid design by Lauren Forristal originally published on TechCrunch

Web3 developer activity spiked in Q4 2022 despite market volatility

Web3 developer activity still grew in the last quarter of 2022, according to a new report, despite crypto market volatility and stacks of negative headlines.

Ethereum, one of the largest layer-1 (L1) blockchains in the crypto ecosystem, had a 453% increase in mainnet smart contract deployments in the fourth quarter of 2022, signaling high developer momentum amid crypto market volatility, according to Alchemy’s Web3 Development Report.

“As we saw in Q3 as well, web3 devs are long-term committed to building out this ecosystem because they believe in the technology,” Jason Shah, head of growth at Alchemy, said to TechCrunch. “That durable belief, paired with more reliable infrastructure, better tooling and increasing consumer adoption every quarter, is compelling devs to dig their heels in despite unfavorable market conditions.”

The global market capitalization of the crypto market has fallen from over $2 trillion at the beginning of 2022 to about $800 billion by the end of the year, according to CoinMarketCap data. The two biggest cryptocurrencies, bitcoin and ether, fell 14% and 8.77%, respectively, from the beginning to the end of the fourth quarter.

“Specifically in Q4, developers appear to be entering a period where deploying more smart contracts is relevant given product maturity, and post-Merge, there is renewed confidence and more affordable deployment costs,” Shah said.

Web3 developer activity spiked in Q4 2022 despite market volatility by Jacquelyn Melinek originally published on TechCrunch

YouTube confirms a test of a new hub for free, ad-supported streaming channels

YouTube is officially running a test that allows select viewers in the U.S. to watch free ad-supported (FAST) channels via a dedicated hub on the video platform. Users that have access to the experiment will find FAST linear channels in the Movies and TV storefront.

In a shared statement to TechCrunch, a company spokesperson said, “YouTube is the only place where viewers can find everything they want, and 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. We are currently running a small experiment that allows viewers to watch free ad-supported linear channels alongside the wide variety of content we offer on the platform.”

The company is reportedly talking with various entertainment companies about featuring their titles in the new hub, according to The Wall Street Journal, which first broke the news. YouTube is apparently testing with various content suppliers, such as A+E Networks, Cinedigm Corp, Lions Gate Entertainment Corp. and FilmRise, WSJ wrote. The hub could launch later this year.

YouTube declined to comment to TechCrunch on the launch date and which media partners it has chosen to test with.

This experiment is part of the company’s goal to give viewers all their favorite content in one destination, like content from creators as well as traditional movies and TV shows, sports and more. The FAST hub will put YouTube in better competition with Roku, Pluto TV and Tubi, among other players in the space.

Whenever YouTube rolls out its FAST channels hub, it will likely do extremely well as it is already a top streaming service worldwide. The company announced in November that it surpassed 80 million global subscribers across YouTube Premium and YouTube Music.

Back in March 2022, YouTube launched free, ad-supported TV shows, giving U.S. viewers access to over 4,000 titles. The new offering was an expansion of its free, ad-supported movies, which includes more than 1,500 movies from partners like Disney Media & Entertainment Distribution, Warner Bros., Paramount Pictures, Lionsgate, FilmRise, and more. Users get up to 100 new titles each week.

More recently, YouTube rolled out a Primetime Channels feature, which allows viewers to subscribe to 30+ streaming services, including Paramount+, Showtime, Shudder, Starz, AMC+ and more.

YouTube became the winner of the NFL Sunday Ticket package last month, which will be available as an add-on to YouTube TV and through YouTube Primetime Channels.

YouTube confirms a test of a new hub for free, ad-supported streaming channels by Lauren Forristal originally published on TechCrunch

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