For the price of $10 a month, paying subscribers can enjoy ad-free premium content.
Soon you’ll be able to pay for videos that you want to see on YouTube. The popular video streaming website is reportedly preparing a smorgasbord of content viewable only by paying subscribers, sources said, corroborating an upcoming subscription service. Sources tell Recode that YouTube will reveal the service at an event on October 21 in Los Angeles.
YouTube has been rumored to be working on a subscription service. Last year, it started funding artists to create new content for the giant streaming platform, which has billions of users around the world watching millions of hours of content on a daily basis. The Alphabet-owned company gets a huge chunk of its money from ads. A subscription offering of $10 a month per user will be a game changer.
For the price of $10 a month, paying subscribers can enjoy ad-free premium content. Some of the content YouTube is funding have yet to be created and are debuting next year, sources said. Most of the content are created by “endemic” video stars, who have a strong appeal among the younger audience. Of course, YouTube will continue to offer free, ad-supported videos. The company declined to comment on the report.
Big media companies including Time Warner’s Turner cable unit, 21st Century Fox’s Fox Sports, A+E Networks Inc., and Comcast Corp.’s NBCUniversal, have already agreed to produce content for YouTube’s paid service, reports the Wall Street Journal. YouTube is also negotiating with Walt Disney, sources familiar with the plans said.
As part of the deal, content creators will get around 55 percent of the revenue generated from subscriptions. The profit sharing between YouTube and participating content creators will depend on how long users spend their time watching their videos.
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“We are progressing according to plan to provide fans more options in how they enjoy content on YouTube,” the company said in a statement. “We have support from the overwhelming majority of our partners, with over 98% of content watched on YouTube covered by agreements, and more in the pipeline about to close.”