You Tube has confirmed the news of the last fall, the rumor regarding the ad-free subscription. Latest You Tube news that it has announced is about the plan it has for ad-free yet subscription based service. This has been explained by the email which was sent out to You Tube Partners. The email describes the future endeavors and this option. This feature will let users to enjoy the ad-free You Tube version on a monthly fee basis. The other monetization option includes the partners to agree on Creator Studio Dashboard’s updated terms, it acknowledges that these changes are made effective on June 15, 2015.
The email has encouraged many sellers and potential Creators of You Tube to take this opportunity positively and generate money more than what they can generate today merely through advertising. They think of the subscription service as something “excite your fans and generate a previously untapped, additional source of revenue for you.”
It has been quite some time that You Tube had plans of moving into subscription business. In October, one of the heads at You Tube expressed that this option is specifically going to be attractive for the mobile viewers who are not willing to have the ads being played before their videos. Now that the subscription model has appeared, You Tube is on its way to depict something like that of NetFlix. NetFlix is where consumers are paying in order to access the content that is on-demand and without interruption.
According to You Tube news, the company will pay 55% to the creators of the total net revenue generated from the subscription fees. The updated term states:
“One thing that neither the letter to creators nor the updated Terms references is the price of the subscription offering. Nor does it disclose when the service will be offered to the public.”
Further it said that June 15 is when the terms are coming into effect. However, it does not imply that people can instantly access it. It can either be a staged roll out or the large subscription launch can be held. But the sources report that the service is most likely going live this year.
We think the reason why the pricing has not been disclosed yet is because that factor has not been decided yet and has to be determined.
This might point to the increased competition for many startups such as that of Vessel. This start up is offering a service which is subscription based for $2.99 per month. It provides access to the videos rather earlier than usual to all the video consumers which they can watch for free on You Tube later though.
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