April 14, 2015
In an email to its YouTube Partners sent last week, YouTube confirmed its plans to launch an ad-free monthly subscription service. A YouTube subscription service free of interruptions has been long talked about and will reportedly move forward once the terms on YouTube’s Dashboard Creator have been updated. YouTube has described the service as yet another opportunity for the company and its creators to monetize their video content and provide YouTube users with additional options.
TechCrunch writes that the updated terms to YouTube’s Dashboard Creator will go into effect on June 15, 2015, but the company has not yet confirmed when it plans to launch its new service or how much it would cost.
As with the ad revenue model, YouTube creators will be paid “55 percent of total net revenues recognized by YouTube from subscription fees that are attributable to monthly views or watchtime of [user] [content] as a percentage of the monthly views or watchtime of all or a subset of participating content in the relevant subscription offering…” TechCrunch reports.
YouTube first experimented with subscription services last year, when it launched “Music Key,” a monthly subscription service priced at $9.99 that gives users access to Google Play’s entire music and music video catalog, free of ads.
In offering an official ad free subscription service specifically for YouTube video content, the company is positioned itself to challenge startups such as Vessel, the so called, “Hulu for YouTube generations,” that Hulu’s former CEO Jason Kilar launched.