YouTube to Introduce New Subscription Service Format

28 Sep 2015 | Author: | No comments yet »

Report: YouTube’s 2-in-1 subscription service is coming this 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.

You’ll soon be able to watch videos on YouTube without seeing annoying ads, as the company is prepping an ad-free subscription based service for the first time. 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.

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. 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. Google-owned YouTube looks to be in the final stages of launching its subscription service, and a report from Re/Code claims the date to mark on users’ calendars may be October 22, 2015. To recall, YouTube mentioned the idea of a subscription-based model nearly a year ago though never committed to a specific timeline as to when it goes into effect.

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. Rumors about a premium service option have circulated for years, particularly after the first report of a music-focused streaming subscription surfaced, which ultimately became YouTube Music Key. The paid subscription will provide the steady home-grown talent that paycheck every month to the channel owner rather than elite content from the TV studio.

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. With the updated terms and conditions, YouTube will pay content owners 55 percent of the total net revenues from the subscription fees – which is the same percentage as the revenues from third party advertisers. ‘YouTube will pay you 55% of the total net revenues recognized by YouTube from subscription fees that are attributable to the monthly views or watch time of your Content as a percentage of the monthly views or watch time of all or a subset of participating content in the relevant subscription offering (as determined by YouTube),” explains YouTube in the email. 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 email also says that content creators will be get guaranteed additional income beyond what’s available today through advertising, adding that the upcoming subscription model has the potential to generate ‘additional source of revenue for you’, referring to content creators. 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.

As Music Key was supposed to cost $10 a la carte, the rumored monthly subscription fee of $10 sounds like a bargain, with music labels and copyright owners due to collect the majority of those fees. One of our own tipsters has confirmed YouTube Red will be the name for the all-in-one subscription. “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. That’s why an overwhelming majority of our partners — representing over 95% of YouTube watchtime — have asked for and signed up for this service.

Customers will have to pay $9.99 for the service when it officially launches. ‘You’ve asked us for ways to listen to music without ads, to keep playing music videos even if you lock the screen or start using another app, and to play music even if you’re not connected to the Internet,’ said YouTube. 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. 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.

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