ITN will be one of the first UK media companies to exploit YouTube's new advertising format, 'in-video', which allows advertisers to run transparent overlays over a portion of the videos being played by users.
The move, which is being led by ITN's multimedia division, ITN On, will produce an average of five entertainment clips a day.
ITN is also making available EPL, a daily round-up of football news, and Sports Fix, a weekly rundown on the world's sports news.
ITN will also create content for the channel from programme strands such as 'Most Requested Ever', a run down of the biggest celebrity stories ever requested from its video library, and 'On this Day in History', a review of events that occurred on that particular day.
Patrick Walker, head of partnerships at YouTube EMEA, said: "We are delighted to have ITN as our new partner and their channel will further enrich YouTube with quality entertainment and sport content.
"Professional content remains very popular with YouTube users and this channel will give ITN the opportunity to extend their reach, test new forms of programming, interact with users, and use YouTube as a new source of revenue generation."