Are You Ready for a Subscription Based You Tube?
According to reports, online video giant YouTube is strongly considering charging users a fee to view select content. The original report came from Reuters, who spoke with the site’s Senior Vice President Salar Kamangar at the recent Reuters Media and Technology Summit. Kamangar admitted that it was something that the Google-owned web property was seriously exploring, yet didn’t reveal much in the way of how things will proceed.
How would paid subscriptions affect marketing on the popular video sharing platform? That is a tough one to call, and would depend on a number of factors. The overall impact could range from little to no affect, to outrage from users who feel they shouldn’t have to pay for the content they have been enjoying freely all this time. For now, here is more information on what would definitely be one of the biggest moves in YouTube history.
Another Revenue Stream
Google has never shared any information to give the public an idea of how much money the company makes through YouTube, but one would imagine that things are going well enough. With reportedly more than four billion videos streaming across the site on a daily basis, it is by far the biggest player in the video sharing space. The site also appears to have a viable monetization strategy as it makes money via advertisements and various sponsorships. Selling premium subscriptions would instantly open up a new revenue stream that allows YouTube to profit handsomely – that is, if users are willing to pay, of course.
A New Outlet For Small Time Cable Players
According to the conversation Kamangar had with Reuters, YouTube’s new subscription-based approach could be built around charging users to pay for content provided by cable stations. Kamangar mentioned that smaller cable channels will eventually move online and start offering programming through an “a la carte” availability model. If this happens, it could provide a way for those channels to free themselves from traditional bundles, which they receive little to no revenue from, and move to web-based distribution that gives them an opportunity to thrive on advertisements alone.
YouTube may also be considering charging a fee for some of its channels that offer premium original content from celebrities and well known brands. Google has already committed to $100 million for the creation of this content, and said it will spend another $200 million to market it to online viewers.
And Now, We Wait
In the conversation with Reuters, Kamangar let it be known that there was not anything significant to announce regarding the potential of paid YouTube subscriptions. However, he noted that it was something that is important to its current lineup of content creators, as well as those who are considering the platform for their targeting efforts. This sounds like an indication that a paid YouTube experience of some sort is more likely than less.
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