Saturday, 8 November 2014

Youtube Considering Premium Service

YouTube is the most widely used video hosting and streaming website online and it is been frequently used by the billions of users worldwide. YouTube understands its market share as well as its popularity and it is actively examining the potential for exclusive subscription services. YouTube CEO Susan Wojcicki revealed that YouTube is planning to move beyond the ad-supported revenue model.

Traditional Mode of Generating Revenue

YouTube is owned by the tech giant Google, which has been exploring ways to go beyond the traditional mode of earning revenue. YouTube is currently ad supported which has helped it to reach out to the billion users in the last few years. But it senses the momentum changing in the attitude of the people who do not want to see the ads in the videos. YouTube has used the age-old ad-based revenue system to increase its revenue but it is now seriously considering releasing its own ad-free subscriptions to its users.

YouTube Seems To Be Influenced By Other Websites

Other video streaming and hosting websites like Hulu Plus have used the similar service in the past to increase its revenue by offering subscription for online video streaming. Even the music websites like Spotify and Pandora have introduced the premium ad-free packages to give a boost to its revenue.

Views against the Introduction of Premium Subscription Service

It has been seen that as the YouTube grow in popularity from just few millions of the users to over 1 billion active monthly users, there has been spurt in the number of ads popping within the video streaming as well. These cropping of ads before and in between of videos had been extremely annoying and frustrating for the users. Now YouTube move to introduce the premium service, which is in effect, is like asking the viewers to pay for the content, which was supposed to be free of charge at the inception of the YouTube. Wojcicki has stressed that the consideration is still in the nuptial stages and subscription would be based on choice rather than being mandatory.

YouTube Pilot Scheme

The idea of charging its users with a subscription scheme for accessing YouTube content is not completely new. Rather it is being proposed due to the success of its pilot scheme, which ran in May 2013 with 53 of its most popular channels. The channels include the National Geographic Kids, UFC and Sesame Street wherein access to shows were charged via a monthly subscription of as low as 99 cents.

YouTube Remains Silent Regarding the Introduction of the Premium Service

Wojcicki has only confirmed the premium service development but she has refused to confirm or deny whether it would be launched before the end of the year or not. YouTube has even reached out to some content producers for its subscription offering but the details have not be determined. Another interesting development has come into view that the YouTube is eagerly working on a music streaming service. This service would also be modelled on the paid subscription basis.

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