Wednesday, 30 January 2013

YouTube Preparing To Switch To Paid Subscriptions Channels This Year

Google is planning to come up with pay channels most likely to be introduced in second quarter this year. Till now free Videos channels of all types have been watched, enjoyed with free subscription. This new Feature will allow Google-owned video sharing site to generate more revenue from its services. As reported by AdAge cited from anonymous sources, YouTube  is reaching out to small group of channel producers and inviting them to submit applications to create channels where users can pay for access. This could either a good or bad news for YouTube viewers or YouTube channel owners.

The pay channels could  be available from second quarter of this year and  priced between $1 and $5 a month. There are also other plans for charging on other features such as content libraries, financial advice shows, self-help shows and access to live events.YouTube CEO Salar Kamangar has talked about plan on the potential to poach second- or third-tier cable networks.

YouTube will look for big media companies with a large followings on the video platform, video game networks, including networks like Maker Studios, Machinima and Fullscreen to become first producers with paid channels. Such big audience is likely to bring high earnings from subscription and the revenue from subscriptions is expected to be split in 45-55 that is common for ads on YouTube. This could be beneficial for both channel producers and Youtube but channel producers have to decide carefully how will their audience react and feel it worth paying for?


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