YouTube will launch a brand new subscription service that allows interested viewers and fans to watch videos without being interrupted by advertisements and commercials.
According to Fortune, the popular video streaming website made the announcement about the new subscription service on Wednesday.
The report claims that the planned paid service was revealed within an email received by various media outlets as well as the website’s top video content producers.
— Engadget UK (@EngadgetUK) April 8, 2015
Bloomberg claims that, according to an inside source, YouTube plans to make the subscription service available by the end of the year.
How would a YouTube subscription service affect the website’s relationship with its video partners? Many of the top YouTubers have been able to generate a substantial income thanks to the same advertisements that would no longer be viewed by paid subscribers.
However, the terms of service will be updated for video partners in June. The new terms will reportedly allow video partners to receive a 55 percent cut of the revenues generated by the paid subscriptions, according to TechCrunch.
YouTube plans to offer an ad-free, paid-subscription version as soon as this year http://t.co/xZzqhrCEA1 pic.twitter.com/ZERetNATux
— Bloomberg Business (@business) April 8, 2015
Reports of YouTube considering a subscription service for an ad-free video experience first surfaced last year. It seemed to be an effective strategy for the website to boost revenue and provide an additional incentive for content producers and popular video partners.
The website took a trip down the road of paid subscription services last November with the launch of Music Key. The ad-free subscription music service came with a monthly fee of $9.99 for interested subscribers.
YouTube is rolling out an ad free paid version…so much indiepop up there “illegally” or “artist doesn’t care”…what about Music Key? — courtney k (@Courtoly) April 9, 2015
On a business note, YouTube would be making a major move towards gaining a competitive edge in the race against such online streaming giants as Hulu Plus, Netflix, and Amazon.
Offering subscription-based services seems to be the strategic move that is currently being made by many other websites and providers — including start-ups like Vessel.
— James Gobert (@MrGobert) April 9, 2015
Do you think that YouTube deciding to launch their own paid subscription service will pay off in a big way or become an epic failure?
[Image Credit: Dan R. Krauss/Getty Images]