shravya | On 29, Jan 2013
YouTube the worlds largest video sharing site is all set to introduce paid subscription model for select channels, according to a report from Adage. In its attempt to lure content producers and advertisers from the traditional tv world it intends to introduce this premium service.
As of now YouTube has reached out to select channel producers and asked them to submit applications to create channels that users would have to pay to access. Current estimates per channel are somewhere between $1 and $5 a month. In addition to these YouTube has plans to charge for content libraries, access to live events and self-help or financial advice shows. The channels will also have the option to include ads in their pay channels, but its unclear as to what form those will take.
YouTube has been talking about the possibility of paid subscriptions for some time now. Its been more than a year since YouTube’s CEO Mr.Kamangar mentioned paid-subscription model for cable networks. So it comes as no surprise in this regard.
A Google spokesperson was found saying, ’there are a lot of our content creators that think they would benefit from subscriptions, so we’re looking at that.” YouTube is advising its current partners to consider carefully how their existing audience will react for premium model and is also asking them to question themselves if they can produce content that is worth paying for?
Paid subscriptions will be rolled out as an experiment with a small group of channels just like the video rentals in 2010. The revenue split from subscriptions is expected to be similar to the 45-55 split that is common for ads on YouTube.