In an effort to widen Youtube’s main advertising revenue stream Google is set to launch paid channel subscriptions this week. The move puts them on a direct collision course with Netflix, Hulu, and Amazon streaming video services.
According to the Financial Times, Google could launch the new service as early as this week, with up to 50 YouTube channels offering subscriptions to video content from $1.99 a month
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At the start the channels available will mainly be occupied by higher end producers. When the model proves itself it will most likely become available to all publishers.
If the subscription option catches on, it could herald a huge change for the online video industry, which has subsisted almost entirely on advertising revenue. It could give producers of Web video series a second source of revenue, analogous in some ways to the flexible pay walls that some newspapers and magazines have adopted. It could also put more pressure on the cable television industry, which is fighting off fresh competition from the Web.
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Youtube’s plans to expand their revenue streams should turn out to be a positive for publishers and advertisers alike. It’ll be interesting to see how this plays out on the publisher side. Will there be new revenue share models? let’s hope so.
And let’s not ignore the potential for new advertising opportunities as well. When the subscription model proves itself the advertising angles will soon follow.
So what do you think? Is this the final nail in the coffin for old school TV? Are you excited about the potential opportunities with this new model? Let us know in the comments below.
Think it is a great idea! Google / YouTube is no difference than any other business, they have to make money to pay bills.
Something that would be killer and wise is allow users to create their own “paid channel”. YT gets their $1.99 a month and the user charges whatever they desire. Be one hell of a way to make product training channels!
Thanks for sharing this post,
Terry
this is the naked true: Is this the final nail in the coffin for old school TV..
This could be AWESOME for a local person in their local area to set up a video magazine of sorts on YT. One thing that they could do is video spots for their local businesses and get a fee from them for advertising. Then get a fee from subscribers every month for seeking out information for that area. It would be in win – win for all involved. Then you could add in lots more local info to bring more value to the subscribers and advertisers alike. You could tie everyone in on the social networks to gain eyeballs too.
Well, considering how YT is so lacking in transparency when it comes to views and income [we even had a period where they deducted each day partner ad income albeit the increase in views…] and basically can adjust to their own liking number of views etc, assuming Google needs more income revenu from time to time this is reason, maybe this would be more profitable to publishers. Again, one has to trust they tell you the real number of subscribers…
I personally think this would be good move in bringing about change for both the publishers and marketers to help in creating new business and putting and greater obstacle in front of the cable industry.
It is definitely interesting. If people will pay for video tuts on Amazon for a couple bucks, which they do, this could really pop.
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