The mayor thanked the employees of Google Chicago, whose parent company owns YouTube, for their pro-bono contribution to the initiative.
The channel will be updated constantly. It includes 23 different videos so far and aims to promote the city both locally and internationally.
The mayor says its simply a new way to connect with voters and advance the city's interests.
"You see business and your profession changing every day," Daley said. "Politics has changed, business has changed. If you don't change your going to live in the past, and if you live in the past you're gonna die."
The mayor's office says the channel is being paid for by money budgeted to the city's cable TV channel "Chicago Works" and will not involve taxpayer dollars.