YouTube to launch streaming TV service 'Unplugged' - report

YouTube is working on a paid subscription service called Unplugged that would offer customers a bundle of TV channels streamed over the internet, people familiar with the plan told Bloomberg. The project, for which YouTube has already overhauled its technical architecture, is one of the company’s biggest priorities and is expected to debut as soon as 2017, one of the people said. YouTube executives have discussed these plans with most major media companies, including NBCUniversal, Viacom, Twenty-First Century Fox and CBS, but have yet to secure any rights, the report said. 

YouTube already launched a paid subscription called Red last year, for access to the video site without advertising. Unplugged would bring more premium content, grabbing more viewing time and generating more non-advertising revenue. 

YouTube has discussed different ways of packaging TV channels, the people said. In one scenario, it would build a bundle of channels with the four US broadcast networks and a handful of popular cable channels, known as a 'skinny bundle'. YouTube wants to sell a package for less than USD 35 a month, according to the report. 

YouTube has also discussed offering a collection of less-watched TV channels and creating smaller groups of channels around themes. A YouTube Unplugged comedy bundle might include three or four TV channels such as Comedy Central, while a lifestyle bundle might include the Style Network. YouTube would charge one subscription for the main bundle, and extra, smaller monthly fees for these theme-based groups, one of the people said.