YouTube will soon release a subscription-based ad removal service for its viewers later this year, where all pre-roll video commercials, ads and banners will be removed. Question is, would you pay money for it?
Entering the age of ad avoidance, the introduction of a monthly subscription service will be a new, separate offering other than YouTube’s paid music service, YouTube Music Key. It will also move the company up to higher levels to compete with other video streaming services like Netflix and HBO Now. That’s not all, the service will likely include offline access to YouTube vast video library – where users can take their videos with them and play it offline through the YouTube mobile app.
In an email from Google to content providers, the email details on how these content providers will receive a share on the revenue from the monthly subscription fee. YouTube will be paying content providers 55% of the total net revenues it gets from subscription fees, based on the monthly views and watch-time the providers obtain.
So far, Google has not disclosed how the pricing of the ad removal subscription service will be. However, Bloomberg has speculated that it will be $10 (about RM36) a month to remove ads on YouTube.
[Source: Bloomberg via PhoneArena]
