YouTube users in some parts of the world ─ not including Pakistan ─ can now stream select films on the platform for free as long as they are willing to sit through commercial breaks, according to an AdAge report.
YouTube had already rolled out a feature allowing users to purchase television shows and films for viewing on its platform.
However, starting in October this year, the online streaming service quietly launched a channel allowing free streaming ─ supported by ads ─ of a limited number of films.
The collection includes classics like the Pink Panther series, the Rocky series and The Terminator so far.
"We saw this opportunity based on user demand, beyond just offering paid movies. Can we do ad-supported movies, free to the user?" Director of Product Management YouTube Rohit Dhawan said while speaking to AdAge.
The new free streaming facility also "presents a nice opportunity for advertisers", Dhawan said.
Sponsorship will also depend on how far movie studios are willing and able to adapt to the growing market of digital streaming for films.
YouTube has about 1.9 billion users per month and according to recent stats released by the site, with almost 20 per cent users accessing the online streaming platform via smart TVs.