In April 9th, Google’s video site YouTube plans to launch the subscription version in this year, so that users can see the video content with no advertising.
On Wednesday, Google in the send video producer e-mail said, obtained through a subscription service revenue, will share with the video producer. Launched subscription version of the video service, will also make Google and streaming video service provider Netflix, Hulu launched a more direct confrontation. According to sources, Google will launch a subscription version of the YouTube service at the end of the year.
Google said in an e-mail, “With this new service, we will create a new source of income, it will add our rapid growth advertising service.” Google has been accelerated to fee to the users. In November last year, Google launched a subscription music service in the YouTube, and invested to the talent and the studio for hundreds millions of dollars, in order to improve the quality of the original content for YouTube. At present, YouTube monthly independent access users has more than 1000000000. Launched with no advertising subscription version of the service, also let Google and HBO etc. streaming video service to compete more directly.
In a statement on Wednesday, YouTube said, “we can’t comment on the ongoing discussion. But provide more choice to enjoy their favorite content creation to the fans, and to offer more opportunity to earn income to the video provider, is always our top priority.” YouTube did not disclose the subscription version of the service launched time.
According to the Google e-mail information, YouTube launched ad version of the video, at the same time, will also launch the same video content with no advertising version for the subscription fee users. Google advance notice this message to the content producers, is hope that they will be able to agree new terms.
BTIG analyst Rich Greenfield said, “We are moving into an era that a consumer is learning how to avoid advertising. First Netflix, then the Amazon, we are gradually to learn how to enter a life without advertisements.”
Launched subscription version of the YouTube service, also shows that Google is trying to make the transformation, hope more revenue is not from advertising. Currently, YouTube users have been able to lease or purchase “star crossed”, “The Interview ” film from the website. In 2013, YouTube launched a pay channel for high quality content. Before five months, YouTube launched the beta version of Music Key music subscription service, pay $10 monthly subscription fee of users will be able to listen to the content of music without advertising.
YouTube is facing more and more competition from streaming video. Netflix monthly fee is at $8 to $12, and now has 57400000 subscribers, has launched the “house of cards” and a series of original series. According to network management tools Sandvine statistical data shows, the second half of 2014, the YouTube North American prime time broadcast streaming media traffic share has dropped to 14%, lower than the same period 19% last year.
Network video production company Defy Media CEO Keith Richman said, “Every move YouTube improved revenue generation selection, will bring huge benefits to content production people. I have full confidence in the ability of YouTube to develop the subscription products. The role of YouTube in the market is very strong, it is difficult for me to believe that the YouTube subscription service to fail.”