NBC is reportedly launching its own comedy-focused subscription video service

Will Smith and Jimmy Fallon lay down some beats

(Image credit: The Tonight Show)

NBC Universal knows that you like those Jimmy Fallon videos — and it wants to earn more money from his viral hits. And so, The Wall Street Journal reports, NBCU is in late-stage development on a subscription online comedy channel aimed at 35-and-under cable TV "cord cutters." The web service, which could cost as little as $2.50 to $3.50 a month, will probably include episodes of Fallon's Tonight Show, Saturday Night Live, and original content.

What that means for viewers is unclear. One idea NBCU is reportedly considering would be to keep content off of YouTube until it has appeared on the subscription service for a while. Or, if it wants those viral Fallon clips to keep going viral, it could reach a revenue-sharing deal with YouTube, which reportedly wants 45 percent of ad revenue. Is 55 percent unfair for NBCU? Well, last week, CEO Steve Burke said that 70 percent of Tonight Show views are online, and most of those viewings earn NBC next to nothing.

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Peter has worked as a news and culture writer and editor at The Week since the site's launch in 2008. He covers politics, world affairs, religion and cultural currents. His journalism career began as a copy editor at a financial newswire and has included editorial positions at The New York Times Magazine, Facts on File, and Oregon State University.