November 17, 2015 | Business of Video |

YouTube Red Ad-Free

YouTubeRed

Here’s how YouTube Red describes their new offering:
Enjoy ad-free and music videos whenever you sign in to YouTube or a YouTube app—on your mobile device, desktop, or enabled TV. Save videos and songs on your mobile device to watch offline. Connect with your favorite gamers without the ads. $9.99/month 1-month free trial.

While we have always expected YouTube to be free, the ads have always been a drag. The question is how to pay creators and YouTube itself for everything they give us. When YouTube creators (aka producers) learned that if they didn’t agree to offer their content on Red, their videos would be set to private, there was initial anger and sadness. Many of them rely entirely on ads to make money. But nearly all creators eventually signed up with the exception of some large media companies like ESPN. YouTube Red will split subscription monies with the rights holders of video paying out as they say “the vast, vast majority of revenue.”

All companies experiment with business models and this is a big experiment that could create a better YouTube for everyone. Creators would control their content, their packagers and media companies would make money, and viewers would love not having commercial interruptions. If YouTube Red succeeds, it could become a model for web businesses.

Also included in the YouTube Red subscription is YouTube Music which, when compared to Spotify and Apple Music, is a much better deal since it includes all of the videos as well. I probably listen to more music on YouTube than I do on Pandora since I can choose which performances to hear and when.

Creators would now be paid by YouTube’s “watch time” metric which counts actual watch time instead of views. Creators might not see an increase in revenue for months.

The best way to pay creators might be to pay them directly through their websites or other platforms. But the YouTube strategy, which could bring YouTube into the black, could also mean a revenue increase for creators. YouTube Red will, however, need to reach critical mass for this business model to work. According to the Wall St Journal, YouTube is still not making a profit.

Despite dramatic advances in video viewing made by Facebook, Twitter and others, YouTube leads the pack by a large margin. Billions of hours of YouTube video are served every day The average YouTube session is 40 minutes. YouTube has more 18 – 49-year-old viewers than any US cable network. Most of the creators, large and small, believe that they will do well when YouTube does well.

YouTube is introducing a number of original movies and TV shows with its biggest creator stars. They are even considering producing films of a much higher caliber as Netflix and HBO do. As Richard Greenfield, a media and tech analyst at BTIG says – even if one percent of YouTube viewers became subscribers at $10 a month, that’s a substantial business. YouTube Red Ad-Free could gradually change the web from an ad supported venue to a subscription model.


Keep Reading...

End of Green Screen

New Camera Will Mean the End of Green Screen

The Lytro Cinema camera captures all the rays of light within a scene. This may not sound unusual, but no other camera can do this. This provides enormous power to the creative process. Every pixel is captured with color properties, directional properties, and its exact placement in space. This creates video in a 3-D space […]

Read More
Eclipse Burned These Cameras

Eclipse Burned These Cameras

The Solar Eclipse Burned These Cameras

Read More
Signma 200mm - 500mm lens Funniest Reviews

Sigma 200-500mm Lens -Funniest Customer Reviews Ever

The Sigma 200 – 500mm with a Nikon F mount is an amazing lens. It has an aperture of F2.8 at the 500mm end and F5.6 at the 1000mm focal length. It’s a heavy one at 35 pounds. It’s pretty amazing. The only real catch I see is its price : $25,999.00. The customer reviewers […]

Read More

Facebook Video Views Overtaking YouTube; Advertisers Delight

Facebook video views now challenging YouTube. Advertisers delight.

Read More




Facebook Comments

Leave a Reply

Your email address will not be published. Required fields are marked *


  • Forbes Magazine calls VideoUniversity one of the best business-to-business sites for digital video production.
  • WINNER
    Videography Magazine's
    "Website of the Month" Award
  • WINNER
    PC Magazine Online "Best Desktop Video Site" Award
  • WINNER
    CyberFilm School's "FOUR STAR" Award