Google the owner of the highly successful video website YouTube is rumoured to be introducing a paid subscription model to the service for specialist channels, most likely to include news corporations and individual channels that make a living from producing their original content such as the Guild.
At the moment the money is coming from ad revenue and the users have voiced how annoying it is to sit through a thirty second ads before they can watch the content they want to. The Financial Times is speculating that Google could release the rumoured service as early as this week, but this is unlikely the paid channels will start at as little as $1.99 per month; for something that you could get for free before hand I can see why users think it’s a rip off.
It’s in the Code literally
Earlier this year YouTube’s vice president Robert Kyncl said that the subscription model would be incredibly important to open up other areas of revenue for content creators, instead of solely relying on ad revenue. There is evidence that a subscription model is coming, the evidence lies within the code of YouTube’s Android app there are snippets that refer to the feature.
YouTube has already trialled renting movies on their service which didn’t seem to take off in the way they’d hoped, add a subscription model to the service would compete with the service offered by Netflix. Especially if more and more creators offer original content, the only thing that would hinder YouTube in taking on Netflix is the lack of full length shows and movies that are on the site legally.
First Paid YouTube Subscriptions and then Music Subscriptions
Google has also been rumoured in the launch of a new music subscription service that would stream to your device or allow unlimited download for a fixed monthly price. This seems to be Google making a full frontal attack on the industry to try and take a slice of the action, Google have allegedly signed a deal with Warner Music Group which is one of the biggest players in the music industry today. Details on the deal have not been disclosed but we can guess that the deal allows Google access to their entire back catalogue of music.
Google has an already built-in audience, this includes everyone that has an Android device and uses the Play store; so they’d be silly not to try and capitalize themselves. Google might receive some stiff competition with Spotify expanding their service into predicting what the user would like to listen to with out any user input and Apple is rumoured to be coming out with a streaming service of their own. It really will come down to a clash of the titans to see who will come out on top in this fiercely competitive industry.
Source – TheVerge