YouTube Plans for Paid Content Subscriptions Starting April
Google-owned YouTube announced this week that plans to start selling subscriptions to some channels on its video platform are in the works.
The company invited a small number of content producers to submit proposals for channels that would charge $1-$5 per month with paid channels to be introduced in April, according to Advertising Age .
Jamie Byrne, the director of content strategy for YouTube, did not elaborate on a full time frame for the plan but announced at a television conference on Monday that "It's a good time to start experimenting."
YouTube, which has until now relied entirely on advertising, plans to take about 45 per cent of subscription revenues for itself and give the rest to the channel producer. It is also planning on charging for other services such as library storage, live events, and even self-help or financial advice shows.
The company has made an effort to try and make the content on its platform more professional in order to attract more advertisers. The video service website allowed companies to create dedicated channels and split the advertising revenues, working with the likes of All3Media, Endemol and BBC Worldwide.
YouTube's shift into premium paid-for channels raises the stakes in the fast-evolving online video sector. The change would put the site into direct competition with cable television and streaming services such as Netflix and Hulu.
Currently Netflix is the world's biggest online video service, which has more than 30 million subscribers and will premiere its own $100 million adaptation of the BBC series "House of Cards" this week, according to Forbes.
The interest in paid subscriptions comes as YouTube continues to invest heavily in original programming similar to the effort of Netflix. Last fall, its parent company Google announced a plan to invest $200 million to market the new channels on the service, according to The New York Times.
