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YouTube thought to be considering subscription service

YouTube considering subscription service

YouTube are reported to be working on a paid for subscription service, with certain channels requiring a monthly fee before users can view the content.

Advertising news service AdAge reported that a group of programmers were currently working with YouTube to produce this premium content, with the monthly fees reported to be between $1 and $5. It is also rumoured that certain videos would be made available on a pay-per-view basis, with users required to make a one off payment for access to a video.

While there has not been an official announcement from YouTube, the proposals would certainly fit in with the recent changes to the service which encouraged greater YouTube subscriptions by users of the website.

How does YouTube make money?

YouTube has an incredible number of users, with ‘Gangnam Style’ by PSY recently becoming the first video to reach 1,000,000,000 views. With the service currently completely free to use, YouTube revenue is made up by positioning adverts before and during videos.

Users who upload videos are rewarded for allowing adverts to be placed on their videos with a share of the profits, with many believing that a similar deal would be put into place should a subscription service emerge.

Kleon West, business development director at theEword, commented: “YouTube is such a wide ranging service that their potential audience is almost limitless. From sports fans to animal lovers, there is something for everyone to enjoy. While these subscription rumours are not yet substantiated, it would certainly be very interesting to discover what kind of success a paid service would enjoy.

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