Watching Videos on YouTube Will Now Be Charged
Google-owned video streaming giant YouTube will now be charging avid users of its video sharing services $1.99 a month to view the videos at over 50 popular specialized premium channels.
Similar to pay-TV packages, the scheme will enable YouTube generate revenue beyond advertising and one-time rentals of movies and TV shows.
"We're looking into creating a subscription platform that could bring even more great content to YouTube for our users to enjoy and provide our partners with another vehicle to generate revenue from their content, beyond the rental and ad-supported models we offer," the company said in an e-mailed statement, without discussing specifics.
The structure will prove most beneficial to people or groups who cater to niche audiences, for example those who teach do-it-yourself projects, or music instructors teaching beginners how to play the guitar, among others.
"For people who create great value but for only a narrow interest group, I think that the potential for pay channels unlocks opportunities for creating revenue streams," Lucas Watson, YouTube's vice president of sales and marketing, said during a preview event in March.
YouTube expects to face criticism over the planned project but believes fans and users will eventually honor the idea.
"It's a whole new skill set to develop: to convince people to actually take out their credit card, even for one cent," Robert Kyncl, YouTube's vice president and global head of content partnerships, told reporters at the March event.
Known as a free-for-all site, YouTube has sold and rented movies and TV shows from major studios since 2008. It was acquired by Google Inc for $US1.76 billion in 2006. At that time, it already boasted 50 million users worldwide. Today, the site is visited by more than one billion visitors a month.
YouTube launched 60 partner channels in, which included the Jamie Oliver Food Channel, Mixmag TV, Howcast and BBC Worldwide On Earth, among others. The video streaming giant has yet to release a final list of which these partner channels will be included once it launches its subscription service.