Exclusive content may become a cash cow for YouTube in the near future as they are trying to get more premium offerings such as sports, live music and entertainment from larger media companies that have otherwise avoided the advertising-supported model. The Google subsidiary has already made an effort to roll out original channels and the additional of a subscription model may prove to make more money for them in the future.
The New York Post reported the musings from YouTube officials and added that while they are courting such offerings from these entities, it doesn’t necessarily mean that YouTube will create a paywall for the entire site. So Smosh and Shay Carl are free for everyone to see at the moment.
Although YouTube already offers pay-per-view movies and a subscription service for cricket fans through its website, this idea reported by the New York Post would be a breakthrough for the video-sharing platform, which makes an estimated $2 to 3 billion in projected revenue.
Let’s break down the pros and con of having a paywall, shall we?
- Stating the obvious: Quality content. The idea of allowing subscription content has been floated since January, when YouTube CEO Salar Kamangar told an audience that he wanted subscription content alongside advertising-supported content. He said, “We’re a media platform and we want to [have] a business model that media partners demand.” Kamangar cited a possible yoga channel
- Generating money for content creators: Subscriptions are a fixed revenue stream for content creators and won’t wildly fluctuate like tying advertising to video views. Should it become a reality, you can be assured that some independent content creators would like to charge for their content.
- As with all things provided for free initially, allowing subscriptions for premium content will turn away people from watching it. Because they’ve long expected things for free, it will be a hard sell to get them to pay for it. Not only that, but for those wishing to make a quick buck out of it, it may take longer given that YouTube may have promotional deals to encourage subscriptions.
[Source: New York Post]