The service is expected to launch in the first quarter and will include all of CBS' content, including live National Football League games, the source added.
Would a YouTube-based TV offering encourage you to ditch your current TV service?
Google has signed with CBS for a new TV service, according to CNBC.
Reportedly, this bundle of TV content is going to be priced somewhere in the range of $25 to $40 per month, and WSJ says that it will be separate from Google's other service, YouTube Red, which offers ad-free YouTube and music streaming.
A number of other competitors are also looking to enter the space with new packages of discounted TV networks bundles, including Apple and Hulu. The initiative is being overseen by YouTube content partnership executives Kelly Merriman and Heather Moosnick, the people familiar with the matter said.
This would put Google out ahead of Apple, which was previously reported to be looking to provide something similar alongside the launch of its latest Apple TV.
Securing rights to carry major broadcast outlets has been a particular challenge, in part because it requires the buy- in of both the networks that make programming and the TV stations that distribute it. But the company has faced skepticism from big media companies due to their perception that YouTube wasn't aggressive enough tackling piracy on its site.
The newspaper, citing sources close to the deal, said that agreements with Disney and 21st Century Fox are likely to follow.
Now, a new report out of the Wall Street Journal is once again confirming that CBS has indeed signed up to the service. YouTube Red is also developing original content with online stars like PewDiePie, and Hollywood heavyweights like Dwayne "The Rock" Johnson. CBS CEO Leslie Moonves said earlier this year that talks between CBS and Apple were over.