Get rid of ads (for a fee)
YouTube, the most popular free video streaming service on the web, is about to offer a subscription option for viewers who'd rather pay a monthly fee than sit through ads.
It's an idea Google and YouTube have been kicking around for a long time now, and come next month, it could finally become a reality. We say "could" because there's no official announcement or confirmation of an October launch from Google, though it sure sounds that way in an email blast to content owners.
"To give fans more choice we will be launching a new ads-free version of YouTube, available to fans for a monthly fee," Google states in its email.
Google goes on to explain that it wants to ensure that fans who pay for an ad-free experience will be able to watch all the same videos that are currently supported by ads.
"That's why we're asking you to update your agreement to reflect the updated terms for the ads-free service... by October 22nd," Google continues.
Google's email seems to suggest a late October launch. The question is, at what price? According to Recode, "industry sources" peg the monthly subscription price being $10, which would also include access to YouTube Music Key, an extension of Google Music that includes music videos. The problem with that price point is that it's no higher than a Google Music subscription, which is included with YouTube Music Key, so it's tough to imagine Google generating enough revenue to offset ads.
The way around this is to not include Google Music in the mix. By going that route, $10/month might be enough to pay royalties to music artists and offset ads in YouTube videos, though it still seems like a stretch.
Yet another solution is to charge more than $10/month, though we suspect even that amount will prove too high for many YouTube fans.
In any event, that's Google's problem to solve. Our job is to hang tight and see what develops next month.
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