YouTube will launch an ad-free subscription service by the end of the year
Tencent Technology News On April 9th YouTube, Google's video site, plans to launch a subscription as soon as this year, allowing users to see videos without advertising content.
Google said in an email to video producers on Wednesday that revenue from subscription services would be shared with producers. The launch of a subscription video service will also give Google a more direct confrontation with streaming video service providers Netflix and Hulu. Google may launch a subscription YouTube service by the end of the year, the sources said.
"By launching this new fee-based service, we will generate new revenue streams that will complement our fast-growing advertising services," Google said in an email. "Google has been accelerating the charging of users to watch content. In November, Google launched a subscription music service on YouTube and invested hundreds of millions of dollars in talent and studios to improve the quality of original content on YouTube. YouTube currently has more than 1 billion independent users per month. The launch of a subscription service without ads also allows Google to compete more directly with streaming video services such as HBO Now.
"We cannot comment on ongoing discussions," YouTube said in a statement on Wednesday. But providing fans with more options to enjoy what they like and creating more opportunities for creators to earn revenue has always been our first priority. YouTube did not say when it would launch the subscription service.
According to Google's e-mail feed, YouTube will launch the same video content without ads to users who pay a subscription fee. Google has given advance notice to content producers in the hope that they will agree to the new terms.
"We are entering an era where consumers are learning how to avoid advertising, " said Rich Greenfield, an analyst at BTIG. First netflix, then Amazon, and we're learning more and more about how to get into a life without advertising. "
The launch of the subscription YouTube service also suggests that Google is trying to transform itself in the hope that more of its revenue will not come from advertising. YouTubers are now able to rent or buy movies such as Interstellar Crossing and Assassination of Kim Jong-un from the site. In 2013, YouTube launched a paid channel for premium content. YouTube also launched a beta music subscription service, Music Key, five months ago, so users who pay a $10-a-month subscription will be able to listen to music on YouTube without ads.
YouTube is facing increasing competition from streaming video. Netflix, which charges $8 to $12 a month and now has 57.4 million subscribers, has launched a series of original episodes, including House of Cards. In the second half of 2014, YouTube's share of prime-time streaming traffic in North America fell to 14 percent, down from 19 percent a year earlier, according to data from Sandvine, a web management tool.
Keith Richman, president of Defy Media, an online video production company, said, "Every move by YouTube to improve its revenue-generating options will bring huge benefits to content makers." I'm confident in YouTube's ability to develop subscription products. YouTube's position in the market is so strong that it's hard to believe that the YouTube subscription service will fail. (Ming Xuan)
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