Youtube will announce later this year a paid subscription for users that want an advertisement free Youtube experience. Google’s plans for Youtube is to develop the streaming platform in a way that will place the popular video website in the same competing league as streaming websites like Netflix or Hulu.
The initiative will bring new revenues for Google and will open the door for new potential monetization methods in the future. Content creators will benefit as well from this new service as Google will share the new cash flow with them, according to a letter sent from Google that Bloomberg obtained.
The new service is in line with what the Web company did in the past months; Youtube introduced a promising music service last November, and has invested hundreds of millions of dollars in facilities and for the sponsorhip of new content creators. The idea is to increase the quality of the content available on the site by boosting the offer original stuff instead of re-uplaods or copies of copies. Youtube, one of the most known brand on the Internet, has a user base considered around 1 billion monthly viewers, putting the website in the same league than Facebook and other popular venues on the web.
Of course, many specialists will see this decision from Google as another clever move toward more paid content. Since last year, Youtube has facilitate paid subscription for partners. We might see the emergence of new content exclusive to the paid service as the main way for partners to make money, specially in light of a specialized channel like HBO going into the streaming business. The popular cable channel will offer the ability to stream its programs without any cable subscription and throug an app.