Rumors have been flying around about YouTube launching its own paid subscription service that would remove ads and offer a variety of other options. Recently, sources who are familiar with the video-sharing website shared a letter with The Verge that revealed all of the company's future plans.
These sources said that YouTube video creators were recently told that the service would be released in the next few months. This new subscription service will let users watch YouTube videos without ads, as well as provide the option to watch videos offline on mobile devices. It will also let creators place some of their videos behind a paywall so that subscribers have to pay for a premium subscription service in order to access the content.
The sources also said that they expect the service to cost $10 a month, though they added that YouTube would offer a number of other price options for more unique services, such as only children's programming or sports content. A good example of how this service could work would be YouTube Music Key, which serves as a model for the all-access subscription and has been in invite-only beta since November. At the time, Google said Music Key would cost $7.99 a month when it comes out of beta, The Verge reported.
YouTube also wants to use the subscription service as an incentive-based system for video creators and make it easier for them to make a full-time income off their videos.
"While YouTube will still take roughly 45 percent of all advertising revenue generated by the channel, they're also offering partners a cut of the subscription money. Subscription revenues will be pooled, with partners receiving 55 percent of the total. Individual partners' cuts will be apportioned based on how much time their viewers spend watching their channels, though, so even medium-sized channels may not earn meaningful revenue from the subscription," The Verge reported. Creators will be required to join the subscription service, or they'll have all their videos set to private.
"While we can't comment on ongoing discussions, giving fans more choice to enjoy the content they love and creators more opportunity to earn revenue are always amongst our top priorities," a YouTube spokeswoman told The Verge in an email.
