YouTube Possibly Planning a Subscription based On-Demand Video Service
The video streaming services have exploded in the recent years. For many of the internet users, online video services have replaced the need for a television as the primary entertainment source. Services like Vimeo, NetFlix, Hulu and others have become a prominent source for folks looking for original or premium content. YouTube is said to be considering plans to raise its dominance in this competitive video streaming arena by launching a subscription-based video on-demand service.
YouTube might rope in its YouTube stars to create videos under the YouTube Originals banner. As it would be subscription based service, the content would be ad-free. It is said that the new service would resemble the YouTube Music Key that offers ad-free access to select music video and free streaming from Google Play Music all for a monthly charge of $7.99.
A subscription-based service will definitely bring in more revenues for YouTube. The service requires heavy investment on the part of Google but doesn’t bring in huge revenues for the Silicon Valley giant. The increased use of Ad-blocks has also made it difficult to attract ad revenue on the website. YouTube is said to be finally breaking even, ten years after it began offering its service. The increased revenues garnered through subscriptions would also bring more income in the hands of the content creators thus encouraging them to create more engaging content.
In the long run, YouTube should also look into creating original series like the ones on NetFlix. Google has deep pockets and it should seriously look into competing in the original shows segment of online video market that has offered some amazing shows, such as House of Cards and Orange is the New Black. By putting its foot in this arena, YouTube will come closer to its goal of making scheduled television obsolete in the near future.