Don’t like YouTube ads? Well you maybe in luck. CNBC has reported this week from the Code/Media Conference, that YouTube’s long piloted paid subscription based ad free service option is being ‘fine tuned’.
Speculation abounds that it will be made widely available for users in the coming months. Perhaps timed to coincide with the upcoming 10 year anniversary of the first YouTube video upload on 23rd April 2015.
YouTube Subscription Model
As pointed out by CNBC this is a departure from YouTube and Google’s ad based revenue model. It is however something that they have been working on for some time. Google already offers a subscription based music service similar to Spotify as well as publication and app service subscriptions via the Google Play Store.
What does this mean for Users?
Well for those of us who find pre-video ads intrusive it will mean that we can skip straight to the content we want. Bringing the YouTube experience in line with that of Netflix.
This option may become very popular very quickly for many users as YouTube continues to roll out unskippable pre-video ads as a standard option to YouTube advertisers.
What does it mean for content producers?
The extra income generated by a subscription model may mean that many content producers are able to produce more content as well as raise the production quality of there content.
Asking users to pay for a service that has been famously free since its inception back in 2005, will mean that users may be expecting a more premium service. This may in face force a trend amongst content makers to up their quality level.
What does this mean for advertisers?
YouTube ads themselves are often quality pieces of video content in their own right. Often they are part of wider video marketing efforts. If the general audience is set to shrink then in order for pre-video adds to maintain wide spread effectiveness their general quality or inventiveness may need to rise.
YouTube Subscription Creator Impact
No doubt YouTube’s offering of a subscription service will change the platform in many ways. Content makers currently dependent on add revenues will need to decide on whether their content is a part of the subscription service. YouTube is yet to announce how or whether this opt in or out option will be offered.
The YouTube subscription is very similar to a number of other subscription based video hosting services in development. Recently we covered Vessel, which is currently in beta testing. Some long time YouTube channels and networks have already signed up for this an other services. The YouTube subscription shift may convince many content makers to stay put.
YouTube Subscription Opportunities
YouTube may go one step further than simply offering an ‘ad-free’ YouTube and offer ‘Subscriber Only Content’. Should that happen, many content creators as well as companies and organisations have the opportunity to build on their video content and open up another revenue stream.
Premium content such as training or video workshops could be offered to the YouTube Subscription community in return for a cut (however small) of the subscription fee based on number of views – in a similar way to the current pre-video ad system.
If you need advice on how you can best use your video content or perhaps you are interested in monetising your content online, get in touch with Workshop Media.