YouTube’s new blended, paid service may roll out next month [updated]

28 Sep 2015 | Author: | No comments yet »

A New YouTube Subscription Service Format to be Released in October.

YouTube might be launching its long-awaited subscription service as soon as the end of October, according to Recode. We all know YouTube has been planning to launch a completely ad-free subscription, but the details have been sorely lacking on things like how much it will cost, what will be included, and when it will launch.Rumours surrounding a premium service option for the well-known video sharing website have been in circulation for years, beginning somewhere around the time that its music-focused streaming subscription, YouTube Music Key, was announced.

Google’s video website already sent out emails to content owners, asking them to agree to the terms for a “new ads-free version of YouTube” by October 22nd. But its new subscription service, which is of the blended variety, may be taking off less than a month from now, with the company having emailed channel owners regarding an upcoming change of terms. That’s why an overwhelming majority of our partners – representing over 95% of YouTube watchtime – have asked for and signed up for this service.

Just like earlier reports revealed, if providers refuse to get on board, their catalogues will “no longer be available for public display or monetization in the United States.” The service won’t just flush out ads from videos, though: Recode says the company’s $10-a-month offering also comes bundled with Music Key, the website’s music streaming product that features offline access, background playback and more. Google-owned YouTube looks to be in the final stages of launching its subscription service, and a report from well-connected blog Re/Code claims the date to mark on users’ calendars may be October 22, 2015. That may be accurate, but the timing of YouTube’s initial announcement of the new viewing experience could also lead individuals to believe the Google-owned online video site is also responding to new subscription players in the market. The subscription is expected to run for $10 / month and would completely remove all paid advertising from YouTube and include the current benefits of Google Play Music Unlimited.

What remains to be seen is how this revenue will be split up, or if the subscription will in fact increase revenue for content creators over traditional advertising. Rumor has it, Google will be launching a new ad-free YouTube video service on October 22 called “YouTube Red.” Of course, nothing good in life is free the new YouTube’s ad-removing video service is no exception. So it’s unclear how the company will make money from the twofer, especially since it reportedly had trouble locking down deals for its ads-free model earlier this year. But some critics argue that the price point (which, if you currently use streaming audio services like Spotify, you are aware is competitive with the industry standard) is too cheap as it would likely only barely cover the cost of music rights. “As you heard in our previous emails, we want to ensure that fans who choose to pay for an ads-free experience can watch all the same videos that are available on the ads-supported experience.

One monthly fee will purportedly get you access to both music streaming and ad-free videos… However, the service has remained in limited beta testing since its launch last November. Re/Code’s sources claim that is because YouTube will be bundling in an update to its Music Key service, as well as a brand-new service that would allow users to enjoy an ad-free viewing experience. The site intends to bundle an update of its music service launched last fall, and the subscription service that will offer users the ability to view videos without seeing ads.

In the email, it’s noted that 95% of partners have signed up so far, and given the side-effects of not doing so, that’s not too much of a surprise. You’ll get to keep your current user name (as long as it doesn’t contain invalid characters, in which case you’ll have to go through a few extra steps to make the transfer), and all your old comments will eventually (not immediately) migrate with you. The new branding only seems to show up as a notification blurb when you leave a video playing in the background as you switch to another app, or as a pop-up when you try to re-open YouTube later.

Engadget notes that YouTube announced its music streaming product’s pricing when it launched its beta version, and it was supposed to cost $10 per month on its own. Just as with mobile, we’re confident this latest update will excite your fans and generate a previously untapped, additional source of revenue for you. We expect the final details of the YouTube ad free subscription service aka “YouTube Red” will likely be announced at Google’s September 29 event on Tuesday. The company is also expected to introduce the newest Chromecast, which would serve as a great vehicle through which users might be able to get trial access to the new YouTube ad removing subscription.

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