YouTube finally revealed its new paid subscription channels after a long line of rumours. Currently, there is a select amount of content with paid subscription options, but YouTube hopes to get more channels running soon.
Each paid YouTube channel comes with a 14 day free trial and they start at $0.99, although they can go up to $7.99, as much as a Netflix subscription.
The paid YouTube channels will offer ad free content to subscribers and they have shut the doors on regular viewers, meaning this will not a joint part revenue/part subscription content offering.
YouTube paid channels
For many YouTube users, the paid subscription model may seem a little odd, considering most YouTube content is not made by professional teams.
If we look at one of the most subscribed YouTube partners, Pewdiepie, he edits his own videos after recording them all from his home and the shared ad revenue is enough to live off.
However, YouTube and studios have been trying to push professional and original content onto the video streaming site. We expect these paid channels to have normal seasons and behind the scenes, for paying users.
Doubts have been raised as to the audience on YouTube that will actually pay a fee to see one channels’ content. UFC may be great for big UFC fans, but will it bring in a large dedicated audience, we suspect not.
YouTube channel growth
YouTube is quite a profitable asset for Google already and the ads at the start of videos have brought in quite a bundle of revenue for the video streaming giant.
In 2007, YouTube allowed content owners to get shared ad revenue with the YouTube program and many hopped onto this opportunity.
Since then, we have seen YouTube millionaires sprout up from the website. PSY’s “Gangnam Style” video would have brought in around $6,000,000 in revenue for the content owners with the shared ad revenue, according to analysts.
We really wonder if this new subscription side of YouTube will be a success, we can see some content creators who would love to have this revenue stream, like ERB (Epic Rap Battles) and RoosterTeeth, who do several animated series now.
If one of these YouTube channels went paid only, this may give the YouTube audience a bigger incentive to pay into paid subscription although the backlash to a decision like this may be volatile for a company with a lot of subscribers.
We can see where Google is going with YouTube, from the 2006 $1.4 billion acquisition, they have done little but build the website and make sure ad revenue grows.
Now they want to make sure YouTube becomes a big player in video streaming and can be seen as an asset for professional video studios looking to make a mark on the Web.