YouTube is starting a pilot program for paid subscriptions to some of their channels found on the video platform. The internet sensation lets content makers charge for any viewer that wants to see their show. This is unheard of in the history of the very popular online site and certainly newsworthy.
Whether or not this gigantic decision in the direction the internet sensation is going will affect their viewer loyalty remains to be seen. The main reason behind the changes in their programming platform from everything free of charge to charging for some channels is money. This is another form of revenue that they are betting will skyrocket. With one billion new viewers each month, the internet business is looking for more revenue outside of their advertising program.
Video makers will be able to make anyone that wants to follow their channel pay a fee. Subscriptions are available for just under one dollar a month in most cases. If you pay for an entire year at once you are able to receive a discounted fee.
Makers of YouTube videos can make their followers pay more if they want. Some are going as high as $9.99 a month. All of the paid channels are offering a free 14 day trial for anyone interested. If you pay for one month and you are not satisfied within the 14 day trial period, monies are refunded.
The preliminary launch includes 53 paid channels, which include channels like HDNet, PGA Digital Golf and UFC. YouTube is hoping to increase revenues above and beyond their money made from advertising for each of these. They are not alone. Smaller platforms like Vimeo have attempted the same launch with paid on demand videos.
The Financial Times announced earlier this week before the company could share their own announcement. Though, they were hinting at the changes as early as February of this year. Expectations are no fees for the bulk of their viewing material.
They have stated this will bring even more terrific content to the platform while making more money for their partners. However, you look at the changes there are definitely pros and cons to asking viewers to pay for what they have received free of charge.
Some users will definitely be alienated. This is bound to happen when you make a change of this type. Regardless of what the costs would be, they are not willing to pay for anything they received free the first time around.
There is enough free content left around the web and on YouTube that the paid channels may not turn out as popular as they believe. Without the popularity remaining steady or increasing for the paid channels, they will not receive the revenues they are betting on.
Netflix is offering more than simply cats playing the piano and costs less than $9.99 each month which is appealing for anyone fond of videos as well as movies. Additionally, Netflix is throwing in DVD rentals and purchases for another $9.99 each month as part of a new revenue rollout they have invented.
You will likely pay for shows which are extremely well-liked and you watch already. This shouldn’t include a lot of foo-foo or silly videos, but material and stars you are familiar with. Some of the channels like “The Young Turks” which already has a billion viewers will be one example of paid subscriptions.
They will likely begin to create more shows with well-known celebrities to entice payers to pay for channels. There are numerous ones which currently host millions of viewers and they will likely be willing to pay the fee each month to continue to enjoy their favorite ones.
There will be less advertising with paid channels. Many users like this idea of less advertising promotions while they enjoy favorite content.
Favorites on YouTube or Hulu or even Amazon may not be on Netflix. This means you are actually paying for content you use and want to see.
This new form of picking individual channels to pay for or not pay for will enable you to put together an ala carte purchase of what you want to see.
YouTube is making enormous changes to their current form of programming videos. They are proposing a monthly charge for certain channel subscribers. The fee they are submitted in their initial proposal is not as competitive as similar services offered under platforms like Hulu or Amazon.
They are betting popular shows with enormous audiences or followers will be willing to pay for the services they now receive free of charge. This is a wonderful way to increase the revenue they currently receive. Still, whether or not fans will be willing to pay or not remains to be seen.