YouTube chief confirms subscription service rumors

YouTube mulling ad-free video subscription service

Paid YouTube anyone?

YouTube succumbs to the subscription lure

A huge month for online video with HBO and CBS announcing online plans!  YouTube joins the party by confirming it is looking into a subscription based model.  Up to now it’s been advertising revenue only for the Google-owned company.

  • The Google-owned service is easily the No. 1 Internet video destination in the world, serving more than 6 billion hours of video monthly. But YouTube is eager to diversify its revenue base by layering in subscriptions — a dual-revenue model established by cable TV and since employed by other businesses like Spotify.

At the Code/Mobile conference earlier this week, Google CEO Susan Wojcicki stated

  • “We’re early in that process, but if you look at media over time, most of them have both ads and subscription services. Right now is ad-supported, which is great because it has enabled us to scale to a billion users (per month), but there’s going to be a point where people don’t want to see the ads.”

YouTube is already busy putting together a subscription-based music streaming service which will compete with the likes of Pandora, Spotify and even Google’s own Play Music service. YouTube already has been assembling a subscription music-streaming service, for which it’s inked agreements with major music companies.

  • Ultimately, YouTube is looking at a subscription-video service as giving it a new tool for persuading top creators to continue to make YouTube their primary home. The video site’s stars have been approached about exclusive distribution deals by a range of competitors including Yahoo; Vessel, the startup led by former Hulu CEO Jason Kilar; and Vimeo, which Tuesday released “Searching for Katie,” a full-length thriller produced by YouTube creator and musical comedian Taryn Southern.

Looks like YouTube is getting ready for major offensive in subscription-based content.  The have even put together an original programming team together in order to develop and fund their own programming.  Let the online Content Wars begin…


More Here… [Variety]

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