YouTube Red – $9.99 A Month To Watch Videos On YouTube

On 28th, October YouTube will launch a new paid subscription service known as YouTube Red, stated YouTube’s chief business officer Robert Kyncl, at the firm’s offices in the Playa Vista neighborhood of L.A.

The service, that won’t have an effect on traditional ad-supported YouTube videos, has a rate of $9.99 a month and let subscribers watch any YouTube material without adverts. Additionally, Kyncl stated, subscribers will get “exclusive access to new original movies and series from YouTube’s leading creators” and also limitless use of Google Play Music.


Vice president of YouTube Originals Susanne Daniels, as well spoke describing new premium movies and series from YouTube star Rooster Teeth, PewDiePie, Lilly Singh, Joey Graceffa and The Fine Brothers, which will be offered only to subscribers on YouTube Red.

The Red-exclusive shows will differ in format, tone and length; however, Kyncl stated they will all be targeted at the rather youthful viewers who are currently YouTube’s most devoted fans. “Scare PewDiePie,” for instance, is going to be a reality series where PewDiePie confronts eerie environments comparable to horror video games.

Kyncl refused to talk about the details of the deals these shows; however, he stated the “large number” of YouTube’s subscription earnings will go to them.

Rumors of a likely YouTube subscription service have been brewing for about one year. So far, YouTube’s only source of income has been ads. Although Google doesn’t break out YouTube earnings in its filings with the Securities and Exchange Commission, the research company eMarketer estimates that the site nets between $one billion and $two billion yearly in America video advertising. Yet in February, the Wall Street Journal disclosed that YouTube, in spite of 2014 global earnings of roughly $4 billion, doesn’t make major profit for Google that bought the site for $1.65 billion in 2006.

Google executives certainly anticipate that they can change this by tapping the huge and growing market for subscription streaming video services. United States end users spent a total of $4 billion on these services in 2014, up an astonishing 26 % from the year before.

However, the lion’s share of his revenue, $3.4 billion, went to Netflix. Some of the other subscription streaming services which have surfaced recently, Acorn TV, Sling TV, Crunchyroll, have managed to find a foothold out there. Netflix’s nearest competitor when it comes to viewership is Amazon Prime Instant Video; however, that is part of a wider subscription package, which as well features free 2-day shipping on Amazon purchases. Hulu Plus that allows subscribers gain access to lately aired television shows for around $8 each month lags far behind.

It’s unclear whether YouTube is going to be any different. Persuading people who already subscribe to one or two streaming services, which they require is yet another is a tall order.

Robert admitted the challenges of attracting subscribers; however, he argued that YouTube Red will be “totally different” from Netflix.

He as well noted that a hundred million US households, roughly 84% of the country, still subscribe to some type of traditional paid-TV service, like satellite or cable. Overall American spending on such subscriptions is almost $100 billion each year, or twenty-five times what is spent on streaming. Assuming YouTube were in a position to pocket even a little percentage of this business with its new service, the benefits may be enormous.

YouTube’s director of product development Manuel Bronstein as well disclosed a new YouTube music app, stating that it will help users find new music depending on their listening behavior.

The app will be accessible to all YouTube users; however, only YouTube Red subscribers will manage to listen ad-free.

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