YouTube To Launch Subscription-Based Service

by
February 19, 2015

According to CNBC, YouTube could be on the brink of a major makeover for companies and content creators. The service would offer a subscription price to eliminate advertisements in videos. Google — which bought out YouTube for $1.65 billion in 2006 — has been experimenting with a subscription based revenue model since 2013, though now it seems the service will launch full-scale in a matter of months.

The ad-free experimental model, starting as low as $0.99 per month, currently features partnerships with National Geographic, PGA, UFC and 26 other channels. After two months the service wasn’t quite what some hoped, at least according to National Geographic’s senior vice president of global strategy. On top of the channels and content, YouTube is also launching their Music Key service in order to bring ad-free content specifically to music videos.

As more and more people are finding ways around the pre-roll and in-video ads — the Ad Block Plus Chrome extension claims over 50 million users — it will be curious to see what demographic this new YouTube service is aimed at. As someone who has cut the cord, I rely on streaming services for information, entertainment and the like. While I turn off ABP for certain websites and for Twitch.TV, for the vast majority of my computer based browsing, I leave it on.

The sheer volume of content on YouTube is staggering: over one billion active users upload 300 hours of content is uploaded every minute. Despite sporting an impressive 50% advert revenue going back to the partners on YouTube, this new subscription-based model for generating revenue could be the cure for people like myself who use third-party options to avoid ads. I certainly can’t speak for everyone using ABP or a similar service, but advertisements are a matter of being an inconvenience and for me, just being impatient.

I for one, welcome our new subscription based YouTube overlords.

(Header image via YouTube)

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You can catch David spouting off about baseball, soccer, esports and other things by following him on twitter, @davidwiers.

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Will
10 years ago

Where do you get affordable internet so as to stream all your content? That is, cord cutting makes all the sense in the world, but in the US I haven’t seen internet data cheap enough to make all that much of a difference. Where else should I be looking?

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Ryan
10 years ago

Way to sneak in a classic Simpsons reference at the end there. That will never get old, only the people who understand them will.

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