YouTube is going to give the users a paid version on the site which will have no ads. Goggle which owns the site has introduced the monthly subscription option of $9.99. The service known as “Red” is going to be launched in USA on October 28 for a free trial period of one month.
This will be the first experience on YouTube to watch the original shows by paying for them as the other sources are providing this service which include Hulu and Netflix.
A good thing about the service is that it is a supplement for the subscribers and the access to the free version will not be lost.
It has been called by the chief business officer of the company, Robert Kyncl, the “”ultimate YouTube experience”. He said that to get the content without ads, these paid subscriptions are being embraced by the customers at a wonderful speed.
It is very important for YouTube to ask for subscriptions as the most of the income of the company comes from the ads. This is a way of diversification of the revenue with the addition of the subscriptions, a similar approach which is being used by the other media companies.
The major benefits of Red are that it contains no ads, it can save videos for you to view them by remaining offline and it also provides access to the music streaming services of Google and YouTube.
So the significance of the package is that you can view the videos without any interruption by the ads and it works as the streaming app, Spotify.
In the month of January, the subscribers will have access to ten shows initially. One of them is the reality series and the name is “ScarePewDiePie”. A documentary will also be the part of that subscription called “A Trip to Unicorn Island” in which Lilly Singh is starring.
Susanne Daniels, the Programming Head said that more shows would be launched in the year 2016. Kyncl told that there will be allowed free viewing of the videos but that would be exclusively for the subscribers of Red for an extended time period.
This is a major investment which is being made by YouTube in the original programming and apparently, it is making the comparison of the services to the other video services like Netflix. Initially, YouTube has the expectation of signing up less number of users for Red. It is not an easy business to be involved and get customers for the paid membership.
Currently, YouTube is supported by the ads for its revenue and it has been a great source of catching billions of users but at some point, people would not be interested to see the ads and they will need the videos that are free of ads. Now to make the new subscription idea successfully implemented, various schemes have been devised by the company by which the income will be diversified.