According to a report from Re/code, YouTube is set to launch ad-free YouTube subscriptions in October. The move has been long-proposed, speculated, and it remains to be seen if the subscription will increase revenue for content creators over traditional advertising.
Content owners have started to receive emails from YouTube, which mentions that videos will no longer be available for “public display or monetization in the United States,” and they have to agree to this by Oct.22. After offering free service to users for a decade, YouTube has said that the service will create a new source of revenue over time that supplements their advertising revenue. Despite the new subscription services, the company promises users that the ads-free platform will bring benefits too.
“We believe that these new terms will greatly strengthen our partnership for the future,” said YouTube.
Last year, YouTube CEO Susan Wojcicki said that YouTube is ad-supported, which is great because it enabled us to scale a billion users; but there are going to be cases where people are going to say, ‘I don’t want to see ads, or want to have a different experience.’ Sources believe that YouTube is aiming to integrate its two services into one offering –YouTube Music Key, launched in beta last fall and the yet-to-to-launched feature that allows users to watch videos without ads.
The subscription service is likely to be priced at $10 per month, and the users will be able to access Google Play Music Unlimited and video streaming without ads. The new service will not affect other YouTube services such as movie rentals, paid channels and pay-per-view content. However, the service will be launched in the US, and it would take more time to bring it to other countries as the company will have to work out legal issues related to rights management.
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