But removing ads from YouTube is not necessarily a good thing for outlets like ESPN that get revenue from ads on YouTube. “Even with 30 day free trials, our creator community will make as much or more as they would have without YouTube Red”. Google-Owned YouTube is the latest example, launching its new subscription YouTube Red service, and essentially mandating that all content providers on the site participate.
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The old saying of “having 500 channels with nothing on”, has given à la carte online services real legs to stand on in recent years by letting anyone watch whatever they want, whenever they want. There’s a great story onThe Verge about all the hoops that YouTube’s executives jumped through to convince both its larger partners like the big movie studios and music companies to get on board, along with independent producers who put together popular videos in their homes. YouTube will also provide a subscription service that gives users access to elite programming, such as allowing videos to be saved to watch offline at a later time. Although the $9.99 monthly fee YouTube is charging users to skip ads will be split with content creators when the service is in full swing, YouTubers are anxious they won’t get paid during the service’s 30-day free trial.
However, subscription-based services have now started surfacing, including Vessel, Sling TV and the recently announced YouTube Red.
Any content downloaded to your device will be accessible from anywhere in the world but you’ll only be able to download content or access ad-free video from the U.S. This is probably related to licensing agreements.
Ultimately, the challenge for YouTube Red is that the basic value proposition runs counter to what YouTube’s billion-plus users have always come back to the site for: free videos.
Addressing YouTube content creators, the video site said that video makers “don’t need to do anything differently for YouTube Red” – such as making longer videos.
YouTubers receive a reported 45/55 cut of ad revenue built around their videos.
Google also promises to release a new YouTube Music app next year that will use algorithms to pick out music videos that include not just the original artists but others who might record a song made famous by someone else. “I think they will figure out how to make a subscription more palatable on the video side”, he said.
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YouTube’s main competitors in the music arena are services like Spotify and Apple Music, which helps explain the Google Play Music bonus.
