There were some interesting talks coming out of YouTube’s camp last week. YouTube (owned by Google) is looking to enter the premium video service (read: viewers are tapped directly for money in order to watch videos, á la Netflix for example).
YouTube CEO Susan Wojcicki has stated that YouTube is looking into adding a paid version of its service. This paid version would be ad-free, which could be enough incentive for some users. Wojcicki said, “YouTube right now is ad-supported, which is great because it has enabled us to scale to a billion users; but there’s going to be a point where people don’t want to see the ads.” “[People] will either choose ads, or pay a fee, which is an interesting model…. We’re thinking about how to give users options.”
Neither Wojcicki nor anyone else from YouTube have giving any kind of time-frame as to when a premium service might launch or even be tested. They have previously announced that they will also be launching a paid tier within YouTube specifically for music. This may be YouTube’s launching point into offering a premium service. A paid version of its music service would allow users to watch music videos and listen to music ad-free. It would also feature other incentives, like offline listening/viewing.
I watch a lot of YouTube videos. I probably spend more time watching content on YouTube (specifically, but also online videos in general) than I do watching traditional television content, but I’m not sure if that is enough for me to pay a monthly subscription. Price point is everything, and while YouTube gave no indication how much their service would cost, if we look at Netflix, Hulu+, Spotify, etc. they are all around $10 a month (plus or minus a couple bucks). I’d probably stick with watching free (with ads) content, but YouTube has put out requests for original, TV-quality shows that YouTube would fund. I’m always interested in good content to consume, so we will have to see how YouTube’s premium services shake out.
At Transformation Marketing in Lincoln, Nebraska, our production department can work with you to develop original, broadcast quality videos. Whether your video should be entertaining, informative, funny, or inspiring… we can help you develop the right type to effectively connect with your customers. After all, ‘it all comes down to trust and results.’