YouTube Considering Paid Subscriptions

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youtube considering cable channelsYouTube, the leading video website in the world, streams over 4 billion videos daily. Although the site is currently monetized through advertisements and site sponsorships, the company is reportedly considering charging users for access to premium content in the near future. During a recent interview with Reuters, Google’s Senior Vice President of YouTube, Salar Kamangar, indicated that YouTube is weighing the possibility of selling subscription content to its users.

Although YouTube and Google executives are carefully considering offering “a la carte” channels and other subscription content, Kamangar said that he has not decided how YouTube will proceed:

“We don’t have anything to announce now. It is something that’s really important to a lot of our top existing content creators, as well as ones that aren’t on YouTube today, so we’re talking very seriously, and we’re thinking about it very carefully.”

If YouTube does begin to allow consumers to purchase “a la carte” cable channels, it may provide an opportunity for smaller cable channels to break free of traditional bundles and transition to Internet-based programming. Traditionally, the smaller cable channels receive little or no compensation from cable distributors and depend entirely on advertisements for revenue. If these cable channels could convince even a small percentage of the hundreds of millions of monthly YouTube viewers to become paid subscribers, their total revenue could be greatly increased.

In addition to considering becoming a web-based “a la carte” cable distributor, YouTube has already committed to spend $100 million creating premium television shows and an additional $200 million marketing the new shows and channels. According to Kamangar, Google may also charge consumers for the YouTube-produced premium content.

Sources Include: Reuters & Mashable
Image Credit: Shutterstock

David Angotti

David Angotti

After successfully founding and exiting an educational startup in 2009, I began helping companies with business development, search engine marketing (SEM), search engine optimization (SEO),... Read Full Bio
David Angotti
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  • Harry

    Thanks for the post =). It actually comes no surprise that youtube will eventually goes towards paid subscription. Afterall, it is still business and not economical at all for G to continue paying all the huge hosting fees.

  • Headhuntable

    It would be a good idea to do this if youtube started licensing rental movies for $1 a movie.

  • Joe Unkovic

    Thanks for breaking this story (at least as far as I am concerned). The first I have heard of this.

    Givens an insight on what the future holds about YouTube.

  • Isabel

    I had a feeling for sure that this would happen someday. Well, all we can do is now wait for YouTube to announce it.

  • rossylamba

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  • Pavlicko

    Wow, imagine that. Google looking to monetize yet another one of it’s popular services. Who would’ve guessed that would happen? Guess it’s time for me to start looking into alternative web analytics services – it’s only a matter of time now before their premium model becomes the only option.