According to an AdAge article released today, YouTube is moving closer to unveiling paid subscriptions as part of their pay-to-view service. Back in October, YouTube’s VP and global head for content spoke at a media summit in Abu Dhabi teasing the idea of paid subscriptions saying, “You will see us offer an option to all channels that are our partners to start charging subscriptions for their content.”
Whether all partners will be allowed to charge for content is unclear, but according to AdAge, several producers have been asked to submit applications for pay-to-view channels.
The amount that each channel will charge monthly is currently rumored between $1 and $5 for a pay to access format. Sources also told AdAge that YouTube is considering the possibility of charging for live events and content catalogs.
A YouTube spokesman released a statement saying:
“We have long maintained that different content requires different types of payment models. The important thing is that, regardless of the model, our creators succeed on the platform. There are a lot of our content creators that think they would benefit from subscriptions, so we’re looking at that.”
A paid subscription format will certainly push the Google-owned video site further into the realm of major media. However, a YuMe survey released in August 2012 showed that 60 percent of online video viewers preferred free ad-sponsored model to subscriptions.
Viewers are willing to pay subscriptions for services like Hulu and Netflix, but that may be solely because they offer television and film content. If YouTube content is ready to compete side by side with major media content in the realm of paid subscriptions is, at this time, anyone’s guess.
To find out more on YouTube’s gradual shift towards paid subscriptions, check out “Advertisements Vs. Paid Subscriptions For YouTube: Which Do Viewers Prefer?”