YouTube is planning to roll out a new video channel service based on paid subscription by the end of this year. Media reports state that YouTube’s soon-to-be-launched video channels will be ad-free.
At present, the free version of YouTube videos begins only after few minutes of online ads. The new service may also allow its users to save the videos for offline mode. According to a report by Bloomberg, subscribers will also be able to rent or buy movies on YouTube.
Releasing a new subscription channel without advertisements, will likely attract YouTube fans to try out the new paid service. The subscription service may help YouTube in increasing its annual profit and expansion of its business circle.
According to YouTube’s updated Partner Program Terms, the tech giant will pay media content creators 55 per cent of the total net revenues from the subscription fees. Google has sent out a letter to creators, thus informing them about its updated terms of service. It also requested the video content creators for YouTube ‘to update their terms through the Creator Studio Dashboard - a process that should feel familiar to anyone who went through a similar process three years ago when we began distributing and monetizing your content on mobile devices’.
According to a letter sent to creators, YouTube’s upcoming video channel may even be divided into specific categories, which will also include children's programming.
(Above image: A letter sent to creators; Image credit: Bloomberg)
YouTube had launched a similar subscription service called YouTube Music Key, in November 2014. The monthly service charges starts at $7.99 per month. However, YouTube hasn’t revealed the name or the subscription charges of the upcoming ad-free video service yet.
