YouTube may soon launch a monthly subscription service

Absrtact: According to The Verge, YouTube is likely to launch a monthly subscription service for video subscriptions. YouTube hopes to increase revenue to give video access by providing users with the best original video, including the star video on YouTube, for a fee-free ad

According to The Verge, YouTube may be on the verge of launching a monthly Pay-per-view video subscription service. YouTube hopes to increase revenue to give video creators higher returns to produce better content by providing users with the best original video (including YouTube star Video) on demand.

The video-on-demand service will be similar to the YouTube Music Key service: Users need to spend 7.99 of dollars a month to enjoy YouTube's ad-free music videos and the free flow from Google Play.

The news comes from a video company executive who declined to be named, a partnership with YouTube to provide original video content to its production. As to what kind of video would be considered the best to pay for, and the amount paid, the executive did not disclose, and YouTube was not officially released.

In recent years, video services from social networks such as Facebook, Twitter and Snapchat have posed a growing competitive threat to YouTube. For Facebook, it is encouraging more and more stars (such as Shakira, Wukesong and Justin Bieber) to post their videos to Facebook to interact directly with their fans. And at this year's Oscars, Facebook reached an agreement with ABC to live on Facebook with an instant video of the Oscar backstage trailer. Facebook's actions have certainly sparked a preference for more advertisers: Brent Smart, CEO of Saatchi & Saatchi's advertising company, said: "Compared to YouTube, Facebook is more intuitive about what people like, and more likely to share the spread. ”

And some video websites "upstart" such as Vimeo, Hulu, vessel and so on YouTube's attack is not small. They offer better, exclusive video content by giving content producers a higher return on revenue than YouTube. Vessel, for example, shares 70% of advertising revenue to content producers, while Vimeo promises to provide 90% of advertising transaction costs to partners. YouTube content providers, by contrast, can only have 55% of the advertising revenue split. So, these video sites will also have a great appeal to YouTube's "star" video creators. Of course, YouTube can be blocked or ranked by Google search engine, but these sites have introduced the personal subscription service model is also more "villains outsmart" means.

The 10-year-old YouTube is now the dominant consumer of billions of-dollar advertisers, but its content costs and infrastructure costs have largely made YouTube unprofitable and, more seriously, on the verge of bankruptcy.

The launch of the paid subscription service will not only boost YouTube content providers with higher rewards, but also have some modest profits to keep the video position from collapsing. However, in the face of such intense video competition in the market, veteran YouTube needs to explore more innovative profit models to consolidate and attract its "God"-video producers, viewers and advertisers.