Google-owned YouTube global video site will soon be charging premium clients like Bollywood and Hollywood productions among others for the kind of viewership they enjoy and create buzz for their upcoming films, opening a new avenue of paid subscription for YouTube videos. It may even result in users opting for paid videos on YouTube like Neflix.
Currently, YouTube is earning only from its ads that run on youtube videos uploaded by the users and it has its share of revenue while paying them in turn for the ads run.
Recently, Larrya Page, CEO of Google who had transferred major operations to Sundar Pichar, however, kept Youtube under Susan Wojcicki, chief executive of YouTube, who reports to him directly, indicating the forthcoming changes to YouTube and its revenue earning strategy.
Susan Wojcicki, speaking at the Code Mobile conference in Half Moon Bay, California on Monday, said a paid option for YouTube a “near term” in all likelihood.
According to the Wall Street Journal, Wojcicki said the option of an ad-free subscription, paid by the uploader, helps serve specific purpose of reaching customers without ad-centric delays and complications thereof. Consumers, in turn have multiple options for where they spend their online video-watching time.
“There are going to be cases where people say, ‘I don’t want to see the ads,’ ” she told the Journal and added, “We’re thinking about how to give users options.”
Since its inception, YouTube has relied on advertising and sponsored posts as its revenue models and it opened some subscription-based channels in which content providers themselves charge a fee, without any intervention from YouTube.
Under the new YouTube paid-subscription model that will have no ads will have to be more in line with Netflix Inc. and Amazon.com Inc., which offer ad-free streaming of movies and TV shows for a flat monthly or annual fee. Even internet-radio services Pandora Media Inc. and Spotify do offer users the option of paying monthly fee without ads disrupting them.